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MARKET EYE-Indian bonds hit over 4-month peak on dovish cbank tone
June 3, 2014 / 9:38 AM / 3 years ago

MARKET EYE-Indian bonds hit over 4-month peak on dovish cbank tone

* India’s benchmark 10-year bond yield down 7 basis points on the day at 8.59 percent after hitting 8.58 percent, its lowest since Jan. 21, with the central bank’s dovish policy tone raising hopes for a rate cut later this year. * The more dovish tone offset the initial negative impact from a cut in the banks’ statutory liquidity ratio, or the amount of bonds lenders must park with the Reserve Bank of India, by 50 basis points to 22.50 percent. * Yields are down as much as 15 basis points from the day’s high reached after the cut in the banks’ SLR requirement. * The cut in the SLR and the new tone were seen by markets as moves that would be welcomed by the new pro-business government as it seeks to revive economic growth, with the RBI also keeping interest rates on hold as widely expected. (;

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