India 10-Year Bond Yield at 1 1/2-Week High on Inflation Concern
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India’s 10-year bond yield rose to the highest level in 1 1/2 weeks on speculation the central bank will keep monetary conditions tight after Governor Duvvuri Subbarao said inflation remains above the comfort level.
The finance ministry may decide on the government’s debt sale calendar tomorrow for the six months starting Oct. 1, a ministry official with direct knowledge of the matter said on Sept. 26. The government has completed 60 percent of its 4.17 trillion rupees ($86 billion) borrowing target for the fiscal year that began April 1. Inflation has been “fairly stubborn,” Subbarao said on Sept. 26.