Mumbai: India’s benchmark bond yield and swap rates eased after government data for inflation for August.
The wholesale price index (WPI) rose an annual 8.5% in August, the government said on Tuesday. The data was the first of a new series with a different base year of 2004-05, new components and weightings.
Under the old series, inflation was 9.5% compared with a median forecast for 9.6% in a Reuters poll.
At 11:24 am, the one-year swap rate was at 6.19%, down 3 basis points from before the data. It had ended at 6.18% on Monday.
The five-year swap rate was also slipped 3 basis points to 6.99% after the data. It had ended at 6.99% on Monday, according to Thomson Reuters data.
The yield on the 10-year benchmark bond eased two basis points to 7.95% after the data, from Monday’s closing of 7.97%.
Dealers said the reaction was temporary as the data was in line with expectations.