Sunday, August 17, 2014

India’s Bonds Reverse Losses as Government May Cut Borrowings

India’s 10-year sovereign bonds reversed the day’s losses after officials said the government may cut its borrowings and announce a debt buyback.

India’s April-September debt sales may be lowered by about 150 billion rupees ($2.5 billion), officials with knowledge of the matter said, asking not to be identified as they aren’t authorized to speak to the media. The reduction is on account of a healthy cash balance, they said.

The yield on the 8.4 percent bonds due July 2024 slid seven basis points after the news to 8.52 percent as of 4:02 p.m. in Mumbai, according to the central bank’s trading system.

The rate ended at 8.54 percent yesterday. The Reserve Bank of India, which manages the government’s borrowing program, may publish a revised sale calendar as early as today, the officials said.

bloomberg.com

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