The release of monetary policy from both the Reserve Bank of India (RBI) and the US Federal Reserve doused the bond market's hopes of rate cuts and resulted in negligible market moves. The RBI Governor's confirmation that the Monetary Policy Committee was targeting a 4% inflation rate and would continue withdrawing accommodation dashed all hopes of rate cuts. The Indian bond market is now predicted to trade in a range between 6.95-7.15% with the 10-year bond experiencing difficulties sustaining levels under 7%. State government borrowing could potentially put pressure on long-term bond yields, however, any rise is unlikely to be sudden.