Bond yields eased to two-week lows on Friday as a drop in global oil prices was seen as easing pressure on the government to raise state-set retail fuel prices. Media reports indicating that the finance ministry was not in favour of a rate increase, but expects a cash reserve ratio hike of 25 basis points during the July 29 monetary policy, led to a contraction in yields. The 10-year benchmark bond yield ended at 9.10%, after touching an early trough of 9.06%, which was the lowest since July 4. It had closed at 9.22% on Thursday. A week ago it had hit a seven-year high of 9.55%.
Read Next
