India rate swaps down on yields; Fed, IIP eyed

MUMBAI, Nov 3 (Reuters) - Indian overnight indexed rate swaps fell on Tuesday, tracking a drop in bond yields, but amid thin volumes, as traders stayed on the sidelines ahead of key overseas and domestic data.

The benchmark five-year swap rate INRAMONMI5Y= closed at 6.66/70 percent, its lowest since Oct. 6, according to Thomson Reuters data, and compared with Friday's close of 6.76/80 percent. The market was shut on Monday for a holiday.

Yield on the 10-year benchmark bond fell as low as 7.23 percent on Tuesday, from Friday's close of 7.30 percent.

"There is a reward for receiving, with the floating leg steady near 3.25 percent, which some people hope to continue for some more time," said a trader at a state-run bank.

Big events investors now looking forward to are the U.S. Federal Reserve's rate decision and Indian industrial production data due next week.

Analysts are almost evenly split on whether India's central bank will raise interest rates in the next three months, but are unanimous they will be lifted at least once by the end of April, a Reuters poll showed. See [ID:nBMA006252] (Reporting by Boby Michael; Editing by Prem Udayabhanu)