MUMBAI: Indian government bond yields eased on Thursday after retail inflation slowed to a 2-year low, raising hopes that the central bank will stick to its guidance of no further hikes if price pressures continue to ease.
The 10-year benchmark bond yield was down as much as 5 basis points in early trade.
It was last trading at 8.78 percent, down 3 bps on the day.
Retail inflation slowed to a two-year low in January, providing some relief to the ruling Congress party ahead of national polls, but a third straight fall in industrial output in December offered little hope for an economic rebound.
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