India’s 10-year government bonds capped their worst monthly performance since November on concern a decline in the central bank’s debt purchases will lower demand for the securities.
The yield on the 8.83 percent sovereign notes due November 2023 jumped nine basis points, or 0.09 percentage point, this month to 8.86 percent in Mumbai, according to the central bank’s trading system. Yields have climbed also on speculation quarterly corporate tax payments due in March will drain cash from the financial system. One-year interest-rate swaps, derivative contracts used to guard against swings in funding costs, fell three basis points to 8.68 percent.
The yield on the 8.83 percent sovereign notes due November 2023 jumped nine basis points, or 0.09 percentage point, this month to 8.86 percent in Mumbai, according to the central bank’s trading system. Yields have climbed also on speculation quarterly corporate tax payments due in March will drain cash from the financial system. One-year interest-rate swaps, derivative contracts used to guard against swings in funding costs, fell three basis points to 8.68 percent.