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4 years ago
MARKET EYE-Indian bond yields remain down; further sharp fall unlikely
December 31, 2013 / 7:07 AM / 4 years ago

MARKET EYE-Indian bond yields remain down; further sharp fall unlikely

* India's benchmark 10-year bond yield trading
down 4 basis points at 8.82 percent on value-buying at
quarter-end but a further sharp fall in yields unlikely, dealers
say.
* Despite the fall in yields seen on Monday and Tuesday, the
benchmark bond yield is on course to rise more than 75 bps on
the year, its biggest annual rise since 2009. 
* Fall in global crude oil prices also helping sentiment for
bonds. 
* The 10-year paper is seen dropping to 8.80 percent in
Tuesday's session whereas a maximum fall of up to 8.75 percent
is possible during the week, dealers say.
* Reserve Bank of India Governor Raghuram Rajan said the
challenge of containing inflation is limiting the central bank's
ability to boost economic growth, while urging the government to
continue with fiscal consolidation to support the economy.
 

 (swati.bhat@thomsonreuters.com/;
swati.bhat.thomsonreuters.com@reuters.net)

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