India bond yields fall but sticky core inflation limits gains
Bond traders now await US inflation data due later in the day and the Federal Reserve policy decision on Wednesday
Indian government bond yields fell today after domestic inflation for November eased within the Reserve Bank of India's target range for the first time this year. The benchmark 10-year yield fell to 7.258%, after settling at 7.2938% on Monday. Bond yields had risen 10 basis points in previous six sessions. On the back of a moderation in food prices, data released on Monday showed retail inflation rose lower-than-expected 5.88% in November, from 6.77% in the previous month. In comparison, analysts had expected the reading at 6.40%.
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