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Bond yields edge lower on softer oil prices
Bond yields eased on Tuesday as lower oil prices helped calm inflation
concerns, but heavy supplies this week kept investors wary of further
tightening of cash conditions. At 9.15 am the 10-year benchmark bond yield
was at 8.44 per cent, six basis points lower than its Monday's close of 8.50
per cent.

Oil was trading just above $105 a barrel, extending a slide from a record
high above $147 in mid-July. India imports about 70 per cent of its oil and
high prices had pushed inflation into double digits. RBI will auction 90
billion rupees ($2 billion) of bills on Wednesday and 80 billion rupees of
bonds on Friday.

US Treasury prices reversed early losses on Monday and rallied on
mortgage-related buying of longer-dated Treasuries after the government took
control of embattled mortgage giants Fannie Mae and Freddie Mac.


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