India's bond yields post weekly rise

Indian bond yields posted their biggest weekly rise for the week, following warnings on inflation from central bank officials and a rally in global crude prices. The benchmark 10-year bond yield closed down 2 basis points at 8.24 percent on the day, after India sold 150 billion rupees in bonds that matched aggressive cut-offs predicted by a Reuters poll of analysts.
However, yields rose 8 bps for the week, its biggest rise since the week ended August 3, while OIS swap rates also surged. Bond markets will be closed on Monday for a public holiday. "Constant warning calls on inflation and government inaction has caused a sell-off in bonds this week," said Anuj Tagra, a fixed income dealer with state-run Union Bank of India. The country's one-year overnight index swap rate fell 2 bps to 7.79 percent, but rose 6 bps for the week. The five-year rate fell 3 bps to 7.14 percent on Friday, but rose 13 basis points for the week.