MUMBAI: Indian federal bond yields were marginally lower in afternoon session on Thursday as a decline in global crude oil prices and bargain buying after the recent fall in bond prices helped. By 3:15 p.m., the 10-year benchmark bond yield was down 2 basis point at 8.72 percent. Yields had briefly moved up to 8.74 percent, after the weekly fuel price data. India's fuel price index rose 15.10 percent in the year to Oct. 1, higher than the previous week's rise of 14.69 percent. US crude futures fell $1 to $84.57 a barrel on Thursday ahead of the weekly oil figures from the U.S. government and as trade data from China pointed to slower demand in the world's second-largest oil consumer. Monthly headline inflation is due on Friday. The wholesale price index probably rose 9.70 percent in September from a year earlier, easing slightly from 9.78 percent in August, a Reuters poll showed. Sustained domestic bond supplies are also seen weighing. The government is set to sell 130 billion rupees of bonds on Friday, including 40 billion rupees of 7.83 percent 2018 bonds, 60 billion rupees of 7.80 percent 2021 bonds and 30 billion rupees of 8.26 percent 2027 bonds. The benchmark five-year overnight indexed swap rate was down 3 bps at 7.34 percent, while the one-year OIS rate was down 2 bps at 8.04 percent.

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