MUMBAI, Feb 11 (Reuters) - Indian federal bond yields fell on
Monday, as the market speculated the central bank may cut its key
lending rate before its annual policy meeting in April, traders
said.
* At 2:50 p.m., the 10-year federal bond yield
<IN079917G=CC> was at 7.43 percent, four basis points below
Friday's close of 7.47 percent.
* Demand for bonds also strengthened as no more federal bond
auctions are scheduled for this fiscal year, traders said. On
Friday, the central bank auctioned 90 billion rupees ($ 2.3
billion) worth of bonds, the last sale in 2007/08.
* Data released Feb. 7 showed India's economy would grow 8.7
percent in the current fiscal year, down from 9.6 percent in
2006/07. Reports of weak economic growth world wide have
increased investors' appetite for less risky securities.
(Reporting by Catherine Bosley; Editing by Prem Udayabhanu)
(([email protected]; +91 22 6636 9035; Reuters
Messaging: [email protected]@reuters.net))
Keywords: MARKETS INDIA MONEY