Indian bond yields ease on steady rate hopes

MUMBAI, Nov 5 (Reuters) - Indian bond yields eased on Thursday after policymakers' statements raised doubts on the strength of an economic recovery.

* At 1:53 p.m., the yield on the 10-year benchmark bond IN069019G=CC was at the day's low of 7.24 percent below Wednesday's 7.28 percent close.

* Traders said recent statements by policymakers suggested that the economic recovery was still fragile and the accommodative stance would last longer.

* On Wednesday, deputy chairman of the Planning Commission Montek Singh Ahluwalia said that the country would miss a target of 9 percent annual growth between 2007/08 and 2011/12 as the global slump and the weakest monsoon in four decades hit output.

* On Tuesday, Finance Minister Pranab Mukherjee said that fiscal stimulus would be maintained as there is economic uncertainty because of the poor monsoon and the global outlook, but fiscal prudence was still needed. [ID:nBOM516605]

* The federal government is due to sell 90 billion rupees of bonds on Friday but dealers said they expected the auction to attract a good response.

* In interest rate futures on the National Stock Exchange (NSE), the December contract N10Z9 was implying an yield of 7.9865 percent, below its 7.9969 percent previous close.

* The yield implied in the March contract N10H0 was 8.2656 percent, below its previous close of 8.4293 percent. (Reporting by Neha D'silva; Editing by Prem Udayabhanu)