Indian bonds, rupee take US inflation scare relatively easy

Bond yields were little changed as RBI assured ample liquidity conditions without trying to control the yields

The high US inflation numbers pushed up yields in the biggest economy of the world, but the Indian bonds, which more or less follow the US cues, were little changed as the Reserve Bank of India (RBI) assured ample liquidity conditions for the bond market without trying to control the yields.

However, the rupee lost responding to dollar strength overnight, and also because it had moved sharply this week on inflows related to Paytm’s initial public offering (IPO).

The 10-year bond yield rose three basis points to close at 6.368 per cent, from its previous close of 6.336 per cent.