Patel Shock Seen Luring Bond Bulls After $6 Billion Selloff
- Surge in Indian bond yields widens spread over U.S. Treasuries
- ‘The room for capital gains just went up,’ says Ashmore’s Dehn
India Policy U-Turn Risks Growth Blowback
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The biggest surge in India’s benchmark 10-year bond yield since 2013 is seen luring foreign investors back to rupee-denominated debt after a four-month hiatus.
With authorities in Asia’s third-largest economy unexpectedly keeping benchmark interest rates on hold and signaling an end to the policy easing cycle Wednesday, the 10-year yield surged 31 basis points. It rose another five basis points to 6.79 percent on Thursday, widening its spread over similar-maturity U.S. rates to 444 basis points, the highest since mid-November. India’s rupee is the region’s best performer over two days.