India bond yields inch up

MUMBAI: Indian federal bond yields were slightly up on Tuesday as the possibility was higher that the Reserve Bank of India would not cut interest rate on Thursday after robust January factory output data.

At 9:17 a.m. (0347 GMT), the 10-year benchmark bond yield was at 8.31 percent, one basis point higher than Monday's close.

Traders expect the yield to move in a band of 8.26 percent to 8.35 percent.

Indian industrial output in January grew at its fastest pace in seven months, powered by a surge in manufacturing including consumer non-durables, a sign of strength in a sluggish economy.

The RBI will leave its key repo rate unchanged at 8.50 percent, 17 of the 20 analysts polled by Reuters on Monday said.