Lackluster demand for the existing government securities coupled with rising inflation resulted in the hardening of yields. Fear of tightening regime from the upcoming RBI annual policy meet on Tuesday weighed on sentiment.
India’s WPI inflation marginally rose to 9.9% in Mar ‘10 from 9.89% in Feb ‘10. However, food inflation eased to 17.22% for the week ended April 3 vis-à-vis 17.7% in the previous week.
Euro zone finance ministers unanimously approved a US$40.5bn emergency aid mechanism, structured in bi-lateral loans, at ~5% for debt-crisis in Greece