Yields rise, but see first quarterly fall in 2 years

Written by Reuters | Mumbai | Updated: Jun 30 2012, 06:30am hrs
Government bond yields rose on Friday after higher-than-expected auction cut-offs, but posted their first quarterly fall in two years on the back of weakening domestic growth and rate cuts by the central bank. India's economic growth in the March quarter slowed to a nine-year low while the central bank cut rates by 50 basis points, its first cut in the current easing cycle, in early April. Traders said yields however are poised to rise going ahead as there were no expectations for any near-term rate cuts while the absence of open market operations amid the high debt supplies would weigh.