Indian bond yields ease on finmin comment
Wednesday, 16 June 2010
MUMBAI, June 15 (Reuters): Indian federal bond yields eased from five-week highs Tuesday as worries of an immediate rate hike abated after the finance minister said late Monday that he was not in favour of altering interest rates right now, traders said.
At 9:15 am, the yield on the Indian 10-year benchmark bond was at 7.65 per cent, below Monday's closing of 7.69 per cent, its highest since May 7.
On Monday data showed headline inflation unexpectedly accelerated in May, heightening expectations the Reserve Bank of India (RBI) would raise rates before its scheduled July review despite concerns over Europe's debt crisis.
However, the finance minister's statement after trading hours came as a relief to traders who were expecting an imminent rate hike.
After market hours Monday, the central bank said India would sell 110 billion rupees of bonds on June 18.
At 9:15 am, the yield on the Indian 10-year benchmark bond was at 7.65 per cent, below Monday's closing of 7.69 per cent, its highest since May 7.
On Monday data showed headline inflation unexpectedly accelerated in May, heightening expectations the Reserve Bank of India (RBI) would raise rates before its scheduled July review despite concerns over Europe's debt crisis.
However, the finance minister's statement after trading hours came as a relief to traders who were expecting an imminent rate hike.
After market hours Monday, the central bank said India would sell 110 billion rupees of bonds on June 18.