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MARKET EYE-Indian bond yields inch lower; sentiment positive
January 10, 2013 / 7:03 AM / in 5 years

MARKET EYE-Indian bond yields inch lower; sentiment positive

* India's benchmark 10-year bond yield down 2
basis points at 7.88 percent as traders remain hopeful of at
least a 25 basis points cut in interest rates later this month.
* Traders say the proposal to increase diesel prices gradually
along with measures like raising rail fares show the government
is keen on mending its finances, which is also aiding sentiment.
* Banks' repo borrowing rises above 1 trillion rupees ($18.48
billion) after six straight sessions. Traders say higher repo
borrowing has also raised expectations of more open market
operations by the central bank.
* Traders are awaiting factory output data on Friday and
Monday's inflation numbers for further direction. The 10-year
yield may gradually drop to 7.85 percent this week, traders say.

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

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