Indian bonds at 3-month high on report govt may borrow less

MUMBAI: Indian government bonds rose to new three-month highs on Tuesday on a report quoting an unnamed finance ministry official as saying that the fiscal year borrowing may be less than earlier budgeted if fiscal deficit is kept in check.

The Economic Times reported that a large chunk of the remaining 400 billion rupees of bond sale may be cancelled due to a pickup in small savings.

The benchmark 10-year bond yield fell 5 bps to 8.47 percent, its lowest since Oct. 11.