India's retail inflation eased for a second consecutive month in September, hitting record lows, but the risks of price shocks from poor monsoon rains and oil are expected to prevent the central bank from cutting interest rates soon. By 0335 GMT, the benchmark 10-year bond yield was down 5 basis points to 8.37 percent.
The yield touched 8.3589 percent in early deals, its lowest since Sept. 5, 2013.