India bond yields seen steady before inflation data | business | Hindustan Times
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India bond yields seen steady before inflation data

business Updated: Jan 04, 2008 08:03 IST

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Indian federal bond yields are seen steady on Friday ahead of weekly data expected to show inflation remaining low, but as the January 29 policy review nears traders are wary of when record oil prices will feed through to the economy.

* The 10-year federal bond yield <IN079917G=CC> ended at 7.76 per cent on Thursday, two basis points up from Wednesday's close.

* A Reuters poll on Thursday forecast the wholesale price index to rise 3.45 per cent in the 12 months to December 22, unchanged from a week earlier. Inflation is running well below the central bank's target of near 5 per cent by end-March.

* Oil <CLc1> traded above $100 a barrel on Thursday, and the record prices are seen increasing the chances the government will have to raise state-set fuel prices, which would add to inflation.

* US Treasury debt prices mostly gained on Thursday with rising expectations the Federal Reserve will continue to cut interest rates, particularly if the non-farm payrolls data on Friday is weak.