Indian bond yields fall on hopes for lower inflation data

MUMBAI: Indian federal bond yields fell on Thursday as traders bet the May inflation data would come in much below market expectations and raise the chances for more aggressive rates cuts by the central bank at its policy decision on June 18.

At 11:42 a.m., the new 10-year bond yield was at 7.97 percent, down 7 basis points on the day, while the benchmark 10-year bond yield was down 5 bps at 8.24 percent.

Traders said there was talk the May inflation number would be below 7 percent.