Bonds fall, rupee weakens as inflation accelerates

Bonds slumped, while the rupee weakened on Monday, after wholesale price inflation (WPI) came in above analysts` estimates, raising expectations that the central bank will raise interest rates for a second consecutive month in late October.

Reuters| Updated: Oct 14, 2013, 13:10 PM IST

Mumbai: Bonds slumped, while the rupee weakened on Monday, after wholesale price inflation (WPI) came in above analysts` estimates, raising expectations that the central bank will raise interest rates for a second consecutive month in late October.

The WPI in September rose to 6.46 percent, above analysts` estimates of 6.00 percent and above the 6.10 percent seen in August.

India`s benchmark 10-year bond yield rose 8 basis points to 8.58, while the rupee weakened to 61.24 per dollar from around 61.20.