Indian 10-yr bond yield falls to 7-week lows
* Tapering supplies, ample cash support demand for debt
* 10-year yield may touch 7.0 percent soon - trader (Updates to mid-morning)
By Boby Michael
MUMBAI, Nov 25 (Reuters) - Indian federal bond yields fell to seven-week lows on Wednesday, with sentiment underpinned by a tapering of fresh debt issues, ample cash in the market and falls in U.S. Treasury yields.
The yield on the 10-year benchmark bond IN069019G=CC closed at 7.19 percent, after falling to 7.17 percent during trade, its lowest since Oct. 8. It had ended at 7.21 percent on Tuesday.
Volumes were 180.45 billion rupees ($3.9 billion) on the central bank's trading platform.
"It fell today tracking an overnight rise in U.S. debt prices, but the domestic scenario is also very much supporting, and we may see the 10-year yield touching 7.0-7.10 percent soon," said a trader at a state-run bank.
There is no government bond auction this week and there are 640 billion rupees of bonds scheduled to be sold before the end of the fiscal year in March, which traders say can be easily managed by the market.
The government has sold 3.54 trillion rupees of bonds since the beginning of the 2009/10 in April. Continued...
Economy seen growing at 7.2 pct in FY10 - govt
The forecast reinforces the possibility that the government may start to unwind its fiscal stimulus in the budget. Full Article
Greek crisis sets euro zone enlargement back
The Greek debt crisis has dealt a setback to prospects of enlarging the euro zone by highlighting the difficulties of managing the single currency area. Full Article
India
US
UK
