Indian bond yields up in thin trade;

• tanvi_singh
• July 10, 2009

Indian federal bond yields edged up on Friday but volume was light as traders awaited direction from a 150 billion rupees ($3.1 billion)
auction.

The sale, later in the day, is more than the 80 billion rupees indicated in the tentative calendar and includes a new 10-year bond.

At 10:58 a.m. (00528 GMT), the yield on the 6.07 percent bond maturing in 2014 was at 6.40 per cent, above its previous close of 6.37 percent. There were no deals in the benchmark 10-year bond. Volumes were low at 10.75 billion rupees on the central bank’s trading platform.

Traders are also awaiting May industrial output data around noon (0630 GMT). A Reuters poll forecast the output to rise 1.4 per cent, unchanged from the previous month.

The benchmark five-year swap rate was at 6.23/28 per cent, above its previous close of 6.21/26 percent and spreads between 1- and 10-year government bonds was at 291 basis points.
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• Last Modified: July 10, 2009
• Filed Under: Latest News, MARKETS, NATION, WORLD