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Bond yields rise on market rally

Bond yields rise on market rally
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First Published: Fri, Jan 02 2009. 02 32 PM IST
Updated: Fri, Jan 02 2009. 02 32 PM IST
Mumbai: The federal bond yields rose in afternoon trade on Friday as market participants booked profits from a sharp rally in recent weeks, ahead of additional supplies through a debt sale later in the day.
At 2:15pm., the benchmark 10-year bond yield was at 5.35%, higher than Thursday’s close of 5.29%.
The yield had hit a trough of 5.18%, its lowest since May 2004, earlier this week as a slew of dismal economic data and benign inflation created an ideal environment for the RBI to ease its monetary policy further.
However, expectations of a sharp cut in interest rates have dimmed after the RBI rejected bids at its intervention bonds buyback on Thursday, fuelling market speculation the cuts may not be very deep.
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First Published: Fri, Jan 02 2009. 02 32 PM IST
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