India bond yields rise ahead of US, India inflation data

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Indian government bond yields ended marginally higher on Wednesday, as traders awaited the inflation data from the world’s largest economy and India for further cues on interest rates.

The benchmark 10-year yield ended at 6.7171%, compared with its previous close of 6.7073%.

U.S. consumer price index (CPI) data is due after Indian market hours on Wednesday, with a Reuters poll predicting inflation likely rose 2.7% year-on-year and 0.3% month-on-month in November.

The 10-year U.S. yield climbed overnight and was around 4.23% in Asia hours, while the odds of a 25-basis-point rate cut are currently at 85% compared to 72% last week. The Federal Reserve, whose policy decision is due next Wednesday, has already cut rates by 75 bps since September.

India data is due on Thursday, with a Reuters poll predicting retail inflation likely slowed to 5.53% in November from 6.21% in October as the arrival of fresh produce to markets moderated soaring…

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