Pump Prices May Rise as Refiner Yields Fall: India Credit
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Bonds of Indian Oil Corp. are rallying, driving yields to the lowest in almost six months, on speculation the government will reduce subsidies and allow fuel prices to rise.
The yield on the Mumbai-based company’s 4.75 percent dollar notes due January 2015 touched 3.51 percent on March 5, the least since Sept. 14, and has slid 85 basis points this year. Those for similar-dated debt of Reliance Industries Ltd., which operates the world’s biggest refinery, fell 24 basis points and those on Valero Energy Corp., the largest independent U.S. refiner, declined 34 basis points.