Bond yields rose despite data showing the country's wholesale price-based inflation (WPI) easing to an eight-month low in January, as market-participants came in terms with higher core inflation. On the macro-front, in other good news, after Retail inflation numbers, India's main inflation gauge, based on monthly WPI, too eased to eight month low at 5.05% in January as compared to 6.16% in December and 7.31% during the corresponding month of the previous. The buildup inflation rate in the financial year, so far, stood at 5.17% compared to a build up rate of 5.78% in the corresponding period of the previous year. However, the reading for November WPI inflation was unchanged at 7.52%.
However, in a sign of worry, Core WPI, edged higher at 3% as compared to 2.8% (M-o-M basis).
On the global front, U.S. Treasury debt prices advanced on Thursday after two days of losses as weaker-than expected economic data revived the hopes that the Federal Reserve could pause in reducing its asset buyback. Meanwhile, brent crude slid toward $108 a barrel on Friday, on track for a modest weekly decline, as downbeat U.S. economic data outweighed supply disruptions in Libya and Angola.
The yields on new 10 year Government Stock 2023 were trading 1 basis point up at 8.88%, after touching a low of 8.84% in early deals, as compared to its previous close of 8.87% on Thursday
The benchmark five-year interest rate swaps were trading 5 basis points higher at 8.51% from its previous close of 8.46% on Thursday.
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