Bonds decline on inflation blues

Government bonds slipped after the release of the weekly inflation data, which showed the price index dipping to 5.78% as against the expectation of 5.72%. The WPI-based inflation was at 6.39% last week.

The 10-year, 7.38% 2,015 bond was traded at an yield of 6.61% as against the morning level of 6.59% and the previous close of 6.56%.