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.
