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Bond yields ease on higher demand from banks
Federal bond yields eased on Monday afternoon, as some state-run banks
stepped up buying securities to keep up with the central bank's statutory
reserve requirements, traders said.

At 4:01 p.m., the 10-year benchmark bond yield was at 8.49 percent, down
from an early high of 8.55 percent and matching Friday's close. Banks need
to invest at least 25 percent of their deposits in government bonds under
the central bank's rules for the statutory liquidity ratio.

Deposits rose 21.6 percent on year in mid August, higher than the 20.9
percent growth reported in the previous two-week period.

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