Bond yields edge higher, rupee, inflation in focus

Reuters Market Eye - The benchmark 10-year bond yield rises 2 bps to 8.87 percent, tracking weakness in the rupee on the back of a surprise rate cut by the European Central Bank.

Some selling is also seen ahead of the 150 billion rupee bond auction later in the day, which includes 70 billion rupees of benchmark 10-year debt.

Traders say inflation and industrial output data scheduled for next week have gained in importance after the Standard & Poor's said on Thursday it will review India's rating once a new government due to be elected next year lays out its policy agenda.

 

The 10 bond yield's intraday range seen at 8.90-8.80, dealers say.

(Reporting by Abhishek Vishnoi)