Bond yields rise, rupee extends fall after PM econ panel report

MUMBAI (Reuters) - India's benchmark 10-year bond yield rose in mid-morning trade on Friday after a report by the Prime Minister's economic panel suggested it would be a challenge for the government to meet its fiscal deficit target of 4.8 percent of GDP in the current year.

The panel also said the current stance of the monetary policy needs to be continue until the rupee stabilises, further hurting bonds.

The benchmark 10-year bond yield was up 5 basis points at 8.57 percent by 11.12 am from earlier in the session. It closed at 8.50 percent on Thursday.

The partially convertible rupee also extended losses to trade at 63.95 per dollar from 63.80 previously. It had ended at 63.50/51 on Thursday.

(Reporting by Swati Bhat; Editing by Prateek Chatterjee)

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