Indian bond yield hits over 13-month low at open after record low CPI

MUMBAI: India's benchmark 10-year bond yield opened at its lowest level in more than 13 months on Tuesday after the retail inflation data for September released post market hours on Monday came in below market expectations.

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.