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Bonds fall, rupee weakens as inflation accelerates

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Reuters MUMBAI
Last Updated : Oct 14 2013 | 12:35 PM IST

MUMBAI (Reuters) - Bonds slumped, while the rupee weakened on Monday, after wholesale price inflation (WPI) came in above analysts' estimates, raising expectations that the central bank will raise interest rates for a second consecutive month in late October.

The WPI in September rose to 6.46 percent, above analysts' estimates of 6.00 percent and above the 6.10 percent seen in August.

India's benchmark 10-year bond yield rose 8 basis points to 8.58, while the rupee weakened to 61.24 per dollar from around 61.20.

(Reporting by Mumbai markets team; Editing by Supriya Kurane)

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First Published: Oct 14 2013 | 12:22 PM IST

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