Wednesday, 14 December 2011 10:58
MUMBAI: Indian federal bond yields edged higher on Wednesday, snapping two sessions of decline, as traders booked profits after the central bank did not announce a bond buyback in the previous session, belying market expectations.
The market was also awaiting inflation data due around noon (0630 GMT) for cues on the central bank's stance when it meets to review policy on Friday.
Economists in a new Reuters poll expect the Reserve Bank of India to accelerate monetary easing in 2012 as economic conditions worsen in Asia's third-largest economy.
At 11:00 a.m. (0530 GMT), the benchmark 10-year bond yield was up 2 basis points at 8.42 percent. Traders expect the yield to be in a 8.40-8.45 percent range during the session.
Total volumes on the central bank's electronic trading platform were higher at 58.85 billion rupees ($1.1 billion), compared with the average 35 billion to 45 billion rupees dealt in the first two hours ...