RTRS:MARKET EYE-India bond yields down on stronger rupee, bargain-hunting
* Indian bonds recover from a recent sell-off, with the
benchmark 10-year bond yield down 7 basis points
to 8.59 percent after rising 24 bps over the previous three
sessions.
* Traders cite some bargain-hunting after the recent sharp falls
and gains in the rupee after the U.S. Congress averts a
default by clinching a debt deal.
* The U.S. debt negotiations being cleared spur gains in bonds
and the rupee, which is trading at 61.3600/3750 to the dollar
versus 61.8350/8450 on Tuesday.
* "The rupee is much better and traders were also sitting light
for two-three days, so we're seeing some buying," says a dealer
with a foreign bank.
* Still, traders say bonds could remain under pressure given
expectations the RBI will raise the repo rate by 25 bps this
month.
