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Bond Traders Tussle With RBI as Underwriters Again Save Auction

  • India’s 10-year yield may rise to 6.6% by December: StanChart
  • Underwriters again had to rescue Thursday’s bond auction
Biggest Mumbai Power Outage in Decades Hits Trading Volume
Photographer: Dhiraj Singh/Bloomberg
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Traders in India are once again testing the central bank’s pledge to support the government’s massive borrowings.

The tension is showing in the benchmark 10-year yield that surged past 6% on Thursday, a level seen as a line in the sand for the Reserve Bank of India. Underwriters had to buy almost 70% of government debt put up for auction as a near-record debt-sale plan and concerns over fewer liquidity measures spook traders.