Indian bond yields almost steady; fresh cues awaited

Indian bond yields almost steady; fresh cues awaited
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First Published: Mon, Dec 15 2008. 02 41 PM IST
Updated: Mon, Dec 15 2008. 02 41 PM IST
Mumbai: “Indian benchmark bond yields were almost steady in afternoon trading as optimism over comfortable liquidity in the banking system was offset by lack of fresh cues,” traders said.
At 2:45pm, the 10 year federal bond yield was at 6.14%, off an early low of 6.05% but still below Friday’s close of 6.21%.
It had hit an intraday low of 6.04% on Friday, its lowest since September 2004.
Bond traders are awaiting the inflation data due later in the week, to gauge the central bank’s likely monetary action. They are also looking at global economic news for implications on the Indian economy.
Investors are awaiting the announcement from the US Federal Reserve meet on 16 December, where it is widely expected to cut interest rates by at least 50 basis points.
Market participants said that they see further rate cuts after industrial output fell 0.4% in October from a year earlier, sharply below the previous month’s 5.5% increase and a forecast for 2.2% growth.
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First Published: Mon, Dec 15 2008. 02 41 PM IST