Bond yields drop, touch 2-mth low

Written by Reuters | Mumbai | Updated: Sep 29 2012, 08:30am hrs
Indias 10-year bond yields dropped for the fourth straight week and touched its lowest level in two months as traders grew hopeful the central bank will be prompted to lower rates after the government showed an inclination towards fiscal discipline.

The benchmark 10-year bond yield closed down 1 basis point at 8.15 percent. It had dropped as low as 8.11 percent in opening deals, its lowest since July 30.