January 10, 2013 / 10:19 AM / 5 years ago

MARKET EYE-India 10-yr yield hits 27-month low; data awaited

* India's benchmark 10-year bond yield drops 4 basis points to
hit 7.86 percent, its lowest since Sept. 29, 2010 on hopes the
central bank will cut key rates by at least 25 basis points
later this month.
* Traders say the proposal to increase diesel prices gradually
along with measures like raising rail fares shows the government
is keen on mending its finances, which is also aiding sentiment.
* Traders are now 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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