India 10 year bond yield hits over 4-month low on Rajan comments

MUMBAI: India's 10-year benchmark bond yield hit an over four-month low after the central bank Governor Raghuram Rajan said public expectations on inflation have come down and are expected to ease further on the government's plan to curb food inflation.

At 0550 GMT, the 10-year benchmark bond yield was down 7 basis points on day at 8.60 percent, a level last seen on Jan. 22.

In a speech in Tokyo, Rajan said he expects to join hands with the government on bringing down dangerously high inflation.

The Reserve Bank of India will review its monetary policy on Tuesday, and a Reuters poll showed that all but three of the 52 economists polled on May 15-27 expect the RBI to hold its key policy rates steady.