Indian bond yields fall to 5-1/2 mth lows on govt funding plans

Last Updated: Mon, Dec 31, 2012 08:06 hrs

India's benchmark 10-year bond yields fell as much as 7 basis points to a five-and-a-half month low on Monday, on quarter-end buying and as the government's move to sell more Treasury bills was seen as reducing the need to sell longer-dated paper.

The government will sell 1.4 trillion rupees ($25.5 billion) of treasury bills between January and March, it said on Friday. Dealers estimate that would translate into a net issuance of around 160 billion rupees T-bills next quarter.

The 10-year benchmark bond yield was at 8.06 percent, down 5 basis point from Friday's close. It fell to 8.04 percent in trade, a level last seen in mid-July.

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