India's Bond Yield Set for Biggest Quarterly Advance Since 2013
- Concern over fiscal-deficit targets hurt sentiment: Peerless
- Rupee on course for a third straight quarterly decline
India’s 10-year sovereign-bond yields completed their biggest quarterly advance since 2013 amid concern the government will struggle to meet its budget-deficit targets and borrow more to bridge the shortfall.
A proposed increase in salaries of millions of civil servants and a plan to clear the debts piling up at power distribution companies threaten Finance Minister Arun Jaitley’s goal of fiscal consolidation. The administration may have to reassess its fiscal projections for the year starting April 1, the Finance Ministry said in a Dec. 18 report. The budget shortfall reached 87 percent of the full-year target in the April-November period, official data showed Thursday. This month’s rise in U.S. interest rates also damped investor sentiment.