India Signals Tolerance for Higher Yields With Sale of New Bond
- RBI sells new 10-year bond at 6.10% yield vs 6.05% estimated
- RBI is showing its comfort with higher yields, FirstRand says
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India’s central bank set a coupon of 6.10% for the new 10-year bond sale, higher than that of the current benchmark, signaling a slight tolerance for higher yields after months of trying to cap them at 6%.
The government sold 140 billion rupees ($1.9 billion) of the new bond as part of a 260-billion rupee sale, the Reserve Bank of India said in a statement on Friday. The yield is higher than the 5.85% coupon for the current benchmark and 6.05% predicted in a Bloomberg survey. Bonds fell after the auction results.