India bonds gain sharply on surprise cut in govt borrowing

MUMBAI: Indian government bonds rallied with the benchmark 10-year yield falling to its lowest in two months on Tuesday following a surprise cut in the borrowing programme for the fiscal year starting April.

The 10-year bond yield dropped to as much as 7.3565 % from 7.62 %, its lowest since January 29, while the rupee was at 64.77 per dollar from 64.87 on Monday.

India plans to borrow 2.88 trillion rupees ($44.45 billion) during April-September, the government said after market hours on Monday, adding it will borrow 500 billion rupees less for the full year 2018/19.

 

Fast, accurate and updated real time local news is available on your smartphone and tablet.
STAY CONNECTED EVERYWHERE YOU GO!

Author

Agencies