India corp bond yields ease after auction results

MUMBAI, Nov 20 - Indian corporate bond yields eased to fresh three-and-a-half-month lows on Friday, tracking government bond yields which dipped after cut-off yields at an auction were set below market expectations. [ID:nMBI005916]

The yield on the Reuters benchmark five-year corporate bond <AAAIN5Y=> ended at 8.07 percent on Friday, the lowest since July 30, and down from Thursday's 8.11 percent.

The spread between the five-year corporate and government bonds widened to 82.44 basis points from 74.15 basis points on Thursday.

The yield on the 10-year benchmark bond <IN069019G=CC> ended at 7.18 percent, below Thursday's closing of 7.25 percent. [IN/]

Tata Motors' 8.40 percent bond maturing 2013 was the most traded, with volumes of 1.2 billion rupees on the BSE.

Total volume traded on Friday was 6.15 rupees, lower than Thursday's 15.36 billion rupees, Thomson Reuters data showed.

This data is sourced from the Bombay Stock Exchange, National Stock Exchange and Fixed Income Money Market and Derivatives Association of India .