Bond yields edge up on risk taking in markets

Indian benchmark 2021 bond yield edged up in late morning trade to 8.53 percent, 1 bp above its Wednesday’s close as some risk taking was seen in markets across Asia.

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The main share index was trading up more than 1 percent.

Traders said talk of a potential fuel price hike in the near future was also weighing on bonds.

Dealer with private bank said fuel price hike talk may gain more chatter after Finance Minister Pranab Mukherjee’s comments on austerity measures to lawmakers.

He added market was also worried about liquidity outlook on RBI’s continued intervention in forex market.

Reuters