Indian corporate bond yields down

Indian corporate bond yields eased marginally on Friday, tracking federal bond yields, as weak factory output data raised prospects of an earlier-than-expected interest rate cut by the Reserve Bank of India. The five-year benchmark corporate bond yield and the 10-year yield both closed 1 basis points lower at 9.31 percent and 9.22 percent, respectively.
The spread between the 10-year corporate bonds and government debt of the same maturity widened to 81.18 basis points from 75.79 basis points on Thursday. The 10-year benchmark bond yield closed at 8.19 percent, down from Thursday's close of 8.27 percent. Total volume in the corporate bond market was 25.27 billion rupees ($511.5 million), up from Thursday's 14.28 billion rupees.