India bond yields track US peers higher

MUMBAI, Aug 16 (Reuters): Indian government bond yields ended higher on Friday, tracking US peers, after strong economic data curtailed expectations of an aggressive Federal Reserve rate cut next month.

The benchmark 10-year yield ended at 6.8700 per cent, compared with its previous close of 6.8580 per cent. The yield ended 1 basis points (bps) lower this week.

"The Fed is expected to clarify its position by mid-September, and by then, we will also have additional inflation data for India," said Abhishek Bisen, fixed income head at Kotak Mahindra Mutual Fund.

US bond yields rose on Thursday after strong economic data eliminated fears about a hard landing and a benign inflation reading made a 50-bps cut look less likely in September.

The US consumer price index increased 0.2 per cent in July, in line with a Reuters poll, after falling 0.1 per cent in June.