Tuesday, 27 March 2012 11:49
MUMBAI: Indian bond yields climbed to near three-month highs on Tuesday in anticipation of a sharp increase in government borrowing in the six months beginning April.
The government has set gross market borrowings at 5.7 trillion rupees ($111.05 billion) for 2012/13, and the central bank is scheduled to release after the market closes on Tuesday the calendar for debt issues in the first half of the year.
The full-year target announced in the annual budget was higher than an expected 5.3 trillion rupees.
"We expect H1 borrowing will be around 60 percent of the planned full-year gross borrowing," said Kumar Rachapudi, fixed-income strategist at Barclays Capital in Singapore.
The government is likely to borrow between 3.6 trillion and 3.8 trillion rupees from the domestic market in the first half of the fiscal year, primary dealers told Reuters on Monday.
At 10:35 a.m. (0505 GMT), the 10-year benchmark bond yield was at 8.50 percent after hitting ...