August 21, 2012 / 4:26 AM / 5 years ago

MARKET EYE-Indian bond yields ease tracking oil

* India's benchmark 10-year bond yield falls 2
bp to 8.22 percent aided global crude prices trending lower.
* Brent crude prices stayed near $114 a barrel as investors
sought clarity on policies to help the euro zone after the
European Central Bank squashed speculation about further steps
to contain the debt crisis. 
* Traders said a sustained fall in crude prices globally can
help domestic inflation soften on a sustainable basis with
nearly two-thirds of the country's oil requirement being
imported. Brent had touched $118 levels on Friday.  
* Traders are watching the CPI data due later in
the day, which is crucial for policy cues, traders said. The
data comes a week after the wholesale price inflation data
showed an unexpected fall. 
* Traders said value buying also emerged after bearishness last
week when yields rose 8 bps following warnings on inflation from
central bank officials.         
 

 (archana.narayanan@thomsonreuters.com; +91-22-61807244; Reuters
Messaging: archana.narayanan.thomsonreuters.com@reuters.net)

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