In what market participants are seeing as an early ​indication from Indian authorities on interest rates, the ‌central bank partially cancelled an auction of shorter ​duration government security to curb ⁠any further spike in bond yields, traders said on Friday.Here are some more details:* Reserve Bank ‌of India accepted bids worth only ₹4506 crore ($471.12 million) for the 6.20% ‌2029 bond, just over 40% of the ‌planned ⁠borrowing in the paper of ⁠110 billion rupees.* RBI sold seven-year bond at slightly higher-than-expected yield, while a new 30-year paper was auctioned at ​a cutoff yield that ‌was in line with estimates.* The three-year or 6.20% 2029 bond yield was dealt at 6.4566%, up 25 basis points in ‌last four weeks since it was issued; ​Reuters poll had pegged cutoff at 6.45%.* “This could be a strong signal ⁠that market is factoring in overly aggressive pessimism in terms of interest rate expectations and could ‌help soothe sentiment for the day,” trader with a state-run bank says.* “Had they gone for the complete target, yield could have tested the territory of 6.50%,” the trader added.* Fresh military escalation in the Middle ‌East has pushed oil prices higher, heaping upward pressure ​on yields that have been rising in recent weeks.* Latest U.S. economic ⁠data strengthened bets of a Federal Reserve rate hike ⁠next, week pushing 10-year Treasury yield to cusp of 5%.* RBI had last ‌canceled auction of a security in October 2025 as investors demanded much higher ​yields.Published on September 11, 2026