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Indian government bond yields are expected to remain stable in the second trading session of the New Year, with a focus on the upcoming state debt sale. Traders anticipate the 10-year benchmark bond yield to be in the range of 7.17%-7.21%. The article also mentions the significant borrowing schedule for Indian states and the anticipated calendar-wise purchase from foreign investors and state-run banks. Additionally, a potential 'bull steepen' in the bond yield curve is expected due to expected interest rate cuts from the U.S. and Indian central banks.

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