Bonds Slump Most in 15 Months on Deficit Setback: India Credit
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India’s corporate bond market is signaling that the government will fail to meet its target of cutting the budget deficit to a four-year low.
The yield on Steel Authority of India Ltd.’s 8.8 percent securities due in October 2016 surged 22 basis points, or 0.22 percentage point, last week to 9.79 percent as the state-owned company deferred its stock sale. The rates on the notes of Oil & Natural Gas Corp. and Indian Oil Corp., other companies in which the government plans to reduce stakes, touched the highest level in 16 months on growing concerns they won’t be able to sell shares this year.