Bonds in India Slide as Modi Stimulus Adds to Market Angst
- Citigroup expects India sovereign bonds to trail swaps
- Barclays estimates 9 trillion rupees of stimulus given
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Sovereign bonds declined in India as traders braced for a further jump in government borrowing after Prime Minister Narendra Modi announced an ambitious 20 trillion rupees ($265 billion) package to deal with the fallout of the coronavirus pandemic.
The benchmark 10-year bond yield rose 6 basis points to 6.22% at 10 a.m. in Mumbai. Yields rose by the most in thee years on Monday following a 54% increase in government borrowing. The rupee gained 0.3% to 75.29 per dollar, while the S&P BSE Sensex index of shares jumped by the most in two weeks.