Tuesday, March 25, 2008
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Forex News
Mar 24 2008 8:33AM
Indian bond yields may rise as inflation up sharply

MUMBAI, March 24 (Reuters) - Indian federal bond yields are expected to rise on Monday after an unexpected jump in inflation close to 6 percent in early March was seen erasing hopes of a near-tearm easing of monetary policy to support slowing growth.

* The wholesale price index <INWPI=ECI>, published on Thursday when the market was shut, rose 5.92 percent in the 12 months to March 8, higher than the previous week's 5.11 percent and way above a market forecast of 5.21 percent.

* The 10-year federal bond yield <IN079917G=CC> ended at 7.63 percent on Wednesday, its highest close since Feb. 22 and compared with 7.59 percent on Tuesday. The market was shut on Thursday and Friday for local holidays. ($1=40.4 Indian rupees)

(Reporting by V. Ramakrishnan; Editing by John Mair) (([email protected]; +91 22 6636 9039; Reuters Messaging: [email protected]@reuters.net)) Keywords: MARKETS INDIA MONEY/

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