Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

India’s Bonds Gain After Factory Output Falls Short of Estimate

Don't Miss Out —
Follow us on:

Sept. 13 (Bloomberg) -- India’s 10-year government bonds gained for the first time in three days as concern the economy is weakening fueled demand for safer assets.

Factory output climbed 0.1 percent in July from a year earlier, a government report showed yesterday, missing the median forecast of economists in a Bloomberg News survey for a 0.5 percent gain. Yields near this week’s highest level also lured investors, according R.S. Chauhan, chief dealer of fixed income and currencies at State Bank of Bikaner & Jaipur.

“People are probably preferring the safety offered by sovereign debt,” Mumbai-based Chauhan said. “That is supporting bonds.”

The yield on the 8.15 percent notes due June 2022 fell two basis points, or 0.02 percentage point, to 8.18 percent in Mumbai, according to the central bank’s trading system. Benchmark 10-year yields have dropped 39 basis points so far this year, according to data compiled by Bloomberg.

One-year interest-rate swaps, or derivative contracts used to guard against fluctuations in funding costs, fell two basis points to 7.75 percent, according to data compiled by Bloomberg.

To contact the reporter on this story: V. Ramakrishnan in Mumbai at rvenkatarama@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net