India’s Failed Debt-Quota Sale Signals Faltering Overseas Demand
- Target missed as faster inflation reduces odds of rate cuts
- A three-month rally in 10-year bonds has stalled in May
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India failed to meet its goal at an auction of debt-investment quotas for the first time in three years, signaling overseas demand is faltering as accelerating inflation reduces odds of more interest-rate cuts.
Foreigners bid for 29.6 billion rupees ($442.6 million) of quotas at Monday’s sale, compared with 33.4 billion rupees on offer, according to a statement from the National Stock Exchange of India Ltd. The last time such an auction was partially subscribed was in June 2013.