Indian bond yields down; inflation data watched

MUMBAI: Indian federal bond yields were lower in early morning trades on Monday, as a successful debt buyback on Friday boosted sentiment.

At 9:20 a.m. (0350 GMT), the 10-year benchmark bond yield was at 8.14 percent, compared with Friday's close of 8.19 percent.

Traders will watch for the December inflation data, expected to be released at 0630 GMT, which will be a key input for the central bank's rate setting meet on Jan 24.

Headline inflation for December probably fell to 7.50 percent, economists polled by Reuters said, helped by a drop in food prices, after remaining above 9 percent for a year.

The RBI bought back 117.6 billion rupees ($2.27 billion) of government bonds through open market operations, marginally lower than the notified 120 billion rupees.