India corp bond yields ease on auction cut-offs

MUMBAI, Nov 6 - Indian corporate bond yields eased on Friday, after lower-than-expected cut-off yields at a federal bond auction.

"The papers that were auctioned had bullish cut-offs. Overall the picture looks quite good," said a senior trader.

The yield on the Reuters benchmark five-year corporate bond <AAAIN5Y=> ended at 8.38 percent, lower than Thursday's 8.43 percent.

The spread between the five-year corporate and government bonds narrowed to 91.32 basis points from 93.92 basis points on Thursday.

The yield on the 10-year benchmark bond <IN069019G=CC> ended at 7.31 percent, slightly higher than Thursday's close of 7.29 percent, after dipping briefly after the cut-offs. [IN/]

Fullerton India Credit Co's 13.75 percent bond maturing 2010 was the most traded, with a volume of 2.50 billion rupees on the NSE.

Total volume traded on Friday was 17.95 billion rupees, higher than Thursday's 16.47 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 .