AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Markets

Indian bond yields up; factory data, sale watched

MUMBAI: Indian federal bond yields rose on Friday, following higher US yields, while traders kept a close eye on facto
Published August 12, 2011

indian-bondsMUMBAI: Indian federal bond yields rose on Friday, following higher US yields, while traders kept a close eye on factory data at 0530 GMT and the results of a $2.6 billion bond sale for further cues.

At 9:44 a.m. (0414 GMT), the 10-year benchmark bond yield was at 8.25 percent, up from 8.21 percent at close on Thursday.

Volumes were a low 19.9 billion rupees ($439 million) on the central bank's trading platform, compared with the usual 30 billion rupees traded in the first 45 minutes of trade.

The one-year rate was at 7.61 percent, up 13 basis points on the day.

The benchmark five-year rate was up 7 basis points on the day at 6.83 percent.

"We should see some selling on the back of risk-on environment and the US, but factory data and auction results will be watched," said a senior trader at a foreign bank.

The US Treasury bond market suffered its worst long bond auction in 2-1/2 years on Thursday as foreign investors shunned it in the wake of a damaging budget battle and downgrade to the credit standing of the United States.

India will sell 30 billion rupees each of 7.83 percent, 2018, and 8.30 percent, 2040, bonds. It will also sell 60 billion rupees of 7.80 percent, 2021, bonds.

India's annual industrial output growth probably slipped further in June to 5.5 percent from a nine-month low of 5.6 percent in May, indicating taut monetary policy and soaring inflation were hindering growth momentum, the median forecast in a Reuters poll showed.

In addition to factory data, inflation data on Tuesday will also be closely watched after data on Thursday showed food inflation accelerated to 9.9 percent in end-July, the highest since mid-March.

Traders said the market was not pricing in any rate increase by the central bank currently but upcoming data is expected to provide clarity.

 

Copyright Reuters, 2010

 

Comments

Comments are closed.