Bond yields up, inflation, auction eyed
Friday, 16 April 2010
MUMBAI, Apr 15 (Reuters): 10-year benchmark bond yield rose to fresh 18-month highs Thursday ahead of inflation data, due around noon, and a 130 billion rupee bond auction later during trade.
At 9:25 am, the yield on the 10-year benchmark bond was at 8.11 per cent, its highest since Oct. 8, 2008 and above Tuesday's close of 8.08 per cent. Inflation, due around noon, is forecast to top 10 per cent and could put pressure on the central bank to aggressively tighten monetary policy.
A poll showed the Indian economy is seen growing at a faster pace in 2010/11 than earlier expected and the central bank may raise rates by another 100 basis points by end-December.
The poll was released on Wednesday when the market was closed.
At 9:25 am, the yield on the 10-year benchmark bond was at 8.11 per cent, its highest since Oct. 8, 2008 and above Tuesday's close of 8.08 per cent. Inflation, due around noon, is forecast to top 10 per cent and could put pressure on the central bank to aggressively tighten monetary policy.
A poll showed the Indian economy is seen growing at a faster pace in 2010/11 than earlier expected and the central bank may raise rates by another 100 basis points by end-December.
The poll was released on Wednesday when the market was closed.