Indian government bond yields are likely to be little changed in early deals on Friday as market participants await a fresh supply of debt through a weekly auction, while U.S. yields continue to remain elevated.

The 10-year yield is likely to move between 6.77 per cent and 6.80 per cent till the debt auction, a trader with a private bank said, compared with its previous close of 6.7824 per cent.

New Delhi will raise ₹32,000 crore ($3.75 billion) through the sale of bonds, which includes a new seven-year bond and the liquid 15-year note.

“Debt auction could provide some guidance in an otherwise dull market,” the trader said.

“Still, as we stand at the doorstep of the new calendar year, overall activity will continue to remain tepid and bond yields will move in a thin range.”

Trading volumes have plummeted in the last few sessions as activity turned tepid towards the calendar year-end.

The daily average volume over the last two weeks has halved to around ₹36,300 crore , sharply lower than ₹71,800 crore in the similar preceding period, data from the Clearing Corp of India showed.

Globally, U.S. Treasury yields stayed elevated, with the 10-year yield briefly touching its highest level in nearly eight months after a solid employment report that could likely allow the Federal Reserve to adopt a less dovish stance in 2025.

Claims for unemployment insurance came in at 219,000 in the latest week, less than the previous period’s 220,000 and the economists’ forecasts of 224,000.

Underlying sentiment in the world’s largest economy remained cautious, after the Fed downsized its 2025 interest rate cut forecast to 50 basis points last week. The odds of a pause in January stood at 89% per cent, according to CME’s FedWatch Tool.