India 10-Year Bond Yield Jumps to 3-Year High on Borrowing Plan
This article is for subscribers only.
India’s 10-year bonds fell for a fifth day, pushing yields to a three-year high, after the government said it will sell 32 percent more debt in the next six months than previously planned.
The notes extended five quarters of declines after the finance ministry said on Sept. 29 it will borrow 2.2 trillion rupees ($45 billion) by March, compared with an earlier target for 1.67 trillion rupees. The market was shut Sept. 30 as banks were closing half-yearly accounts. Increasing debt sales means the nation will miss a target to cut the budget deficit to 4.6 percent of gross domestic product, according to Fitch Ratings.