Indian bond yields at 6-yr highs ahead of data

Indian bond yields at 6-yr highs ahead of data
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First Published: Thu, Jun 19 2008. 02 53 PM IST
Updated: Thu, Jun 19 2008. 02 53 PM IST
Mumbai: Indian federal bond yields jumped to new six-year highs on Thursday, 19 June, on growing concerns about investor appetite for a Rs60-billion bond auction on Friday, amid soaring inflation and tight cash conditions in the money market.
• At 2:05pm, the 10-year benchmark bond yield was at 8.45%, eight basis points above Wednesday’s close of 8.37% and a level it last tested in May 2002.
• A Reuters poll of 12 economists on Wednesday forecast annual inflation rate to have risen to a 13-year high of 9.82% in early June, spurred by an increase in state-set fuel prices, from 8.75% a week earlier.
• Four economists expected inflation would come in above 10%. The data will be released around noon on Friday.
• The outlook for inflation in India is uncertain in the June and September quarters, but there should be a clear downtrend in the December quarter, the chief economic adviser of the finance ministry said on Thursday.
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First Published: Thu, Jun 19 2008. 02 53 PM IST
More Topics: Bonds | Yield | RBI | Inflation | Money Matters |