RTRS: Indian bond yields down after US data; local data eyed
* U.S. data shows surprise job losses in December
* India's industrial data due Tues, inflation due Thu. (Updates to mid-morning)
MUMBAI, Jan 11 (Reuters) - Indian bond yields fell on Monday after disappointing U.S. jobs data late on Friday casted doubts over the revival of the world's largest economy.
"Recent data worldwide is suggesting that the global economy is still not very strong and hence domestically there is a feeling that the central bank may not hike repo and reverse repo rates now," said S. Srikumar, Manager of fixed income at Corporation Bank.
At 10 a.m. (0430 GMT), the yield on the most traded 6.35 percent 2020 bonds IN063520G=CC was at 7.63 percent, after falling as low as 6.61 percent in early deals and below Friday's close of 7.66 percent.
There are no trading in the benchmark 6.90 percent 2019 bonds IN069019G=CC on Monday, as coupon payments are due on Wednesday.
Volumes were a low 19.70 billion rupees ($443.9 million) on the central bank's trading platform
Srikumar expects the 2020 bond to trade in the range of 7.60-7.70 percent range in the day.
U.S. Treasury debt prices mostly rose on Friday after data showed the economy lost jobs unexpectedly in December, leading investors to pare back bets on future rate hikes by the Federal Reserve. [US/]
The benchmark five-year interest rate swap was at 6.85/89 percent, from Friday's close of 6.89/93 percent. [IN-SWAPS]
Dealers said they were eyeing India's industrial output for November which is due on Tuesday and monthly inflation data on Thursday for indications on the central bank's policy action at its quarterly review on Jan. 29.
The Reserve Bank of India is widely expected to increase the cash reserve ratio requirements for banks, but economists are divided on when it will raise interest rates.
The government is scheduled to sell 80 billion rupees of treasury bills on Wednesday ahead of a 100-billion-rupee bond sale on Friday.
In interest-rate futures on the National Stock Exchange (NSE), the March N10H0 contract implied a yield of 8.1652 percent while the June N10M0 contract implied 8.1558 percent. ($1 = 45.4 Rupees) (Reporting by Neha D'silva)
