Indian bond prices fall after wholesale inflation data

MUMBAI: Indian bond yields and swap rates rose after data showing headline inflation in November accelerated more than expected, cementing expectations the central bank will raise interest rates for a third consecutive time at its policy review on Wednesday.

India's benchmark 10-year bond yield rose 3 basis points to 8.94 percent from levels before the wholesale inflation data on Monday.

The country's 1-year overnight index swap (OIS) rose 5 bps to 8.57 percent, while the 5-year OIS rose 4 bps to 8.53 percent.

The wholesale price index (WPI) rose 7.52 percent in November, above the 7 percent seen in October. Analysts had expected WPI at 7 percent.