India corp bond yields ease on econ outlook

MUMBAI, Nov 5 (Reuters) - Indian corporate bond yields eased on Thursday, with sentiment supported by an uncertain economic outlook, but traders awaited a 90-billion-rupee bond sale on Friday for direction.

The yield on the Reuters benchmark five-year corporate bond AAAIN5Y= ended at 8.43 percent, lower than Wednesday's 8.47 percent.

The spread between the five-year corporate and government bonds narrowed to 93.92 basis points, from 94.88 basis points on Wednesday.

The yield on the 10-year benchmark bond IN069019G=CC ended at 7.29 percent, one basis point above Wednesday's close, after falling as low as 7.24 percent during trade. [IN/]

On Wednesday, deputy chairman of the Planning Commission Montek Singh Ahluwalia said India 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. [ID:nBOM244859]

On Tuesday, Finance Minister Pranab Mukherjee said fiscal stimulus would be maintained given the economic uncertainty. [ID:nBOM516605]

Tata Motors' (TAMO.BO: Quote, Profile, Research) bond, maturing in 2011, was the highest traded, with a volume of 2.05 billion rupees on the NSE.

Total volume traded was 16.47 billion rupees, lower than Wednesday's 17.46 billion rupees, Thomson Reuters data showed.

This data is sourced from the Bombay Stock Exchange, National Stock Exchange and Fixed Income Money Market and Derivatives Association of India (FIMMDA). (Reporting by Anurag Joshi; Editing by Sunil Nair)