Indian bond yields up on inflation

Indian bond yields up on inflation

Mumbai: Indian federal bond yields rose on Friday, on higher-than-expected annual inflation in early September and tight cash conditions in the banking system.

At 9:01 am, the 10-year benchmark bond yield was at 8.4%, two basis points higher than Thursday’s close of 8.39%.

Official data after market hours on Thursday showed the wholesale price index rose 12.14% in the 12 months to 6 September, marginally above the earlier week’s 12.1 % and exceeding a Reuters forecast for 12.09%.

Cash remained tight with overnight call money rates trading at 12.75/13%, higher than Thursday’s close of 10.0/10.25%, and well above 6% when cash is ample.

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