Monday 10 March 2014

Indian bond yields rise; data heavy week


Country's benchmark 10-year bond yield were 3 basis points higher at 8.84 per cent, tracking a weaker rupee and higher US yields. 

The rupee was trading weaker at 61.28/29, versus Friday's close of 61.08/09, tracking falls in other emerging market currencies. Data heavy week with February CPI and January factory output due on Wednesday, February WPI on Friday. 

Cash conditions expected to tighten with service and excise tax outgo scheduled, followed by advance tax. 

Traders say CPI is broadly expected to be close to 9 percent, with any number significantly below that expected to spark a rally in debt and the rupee. 


US Treasuries yields rose to their highest levels in six weeks on Friday after jobs gains were stronger than expected in February, which could ease fears of an abrupt slowdown in economic growth and keep the Federal Reserve on track to reduce its monetary stimulus. 


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