Indian 10-Year Bonds Fall on Rate View; Yields at 14-Month High
This article is for subscribers only.
India’s 10-year bonds fell, pushing yields to their highest close in 14 months, on speculation the fastest food price gains since 1998 will prompt the central bank to raise borrowing costs.
Bond yields extended a four-week decline after a government report showed last week an index of food articles advanced 19.95 percent in the week ended Dec. 5. Reserve Bank of India Governor Duvvuri Subbarao said Dec. 18 he discussed the country’s economic situation with Finance Minister Pranab Mukherjee, fueling expectations he may tighten monetary policy soon.