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Indian Bond Yields Rise Ahead Of RBI Governor's Address

The benchmark 10-year bond yield was trading at 7.19 per cent by 1:13 pm after having touched 7.21 per cent, its highest since April 18. The yield closed at 7.12 per cent on Monday. Financial markets were closed on Tuesday

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India's benchmark 10-year bond yield rose to its highest in more than two weeks on Wednesday afternoon as investors speculated on the possibility of an off-cycle rate increase by the Reserve Bank of India.

The central bank said in a tweet, governor Shaktikanta Das, will be making a statement at 2 p.m. local time (0830 GMT) on Wednesday.

The benchmark 10-year bond yield was trading at 7.19 per cent by 1:13 pm after having touched 7.21 per cent, its highest since April 18. The yield closed at 7.12 per cent on Monday. Financial markets were closed on Tuesday.

"There is a lot of speculation. A rate increase will be very unusual considering the central bank has said they don't want to shock markets but clearly there are expectations for a hike being priced in," a senior trader at a foreign bank said.

The partially convertible rupee was trading at 76.44/45 per dollar compared with its close of 76.5150. Both the main share indexes and were down around 1.1 per cent.


(Reuters) 


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