Markets

Indian bond yields edge higher ahead of auction

Published December 23, 2011 Updated December 23, 2011 04:44am

At 9:17 a.m. (0347 GMT), the benchmark 10-year bond yield was at 8.38 percent from Thursday's close of 8.33 percent.

The government is set to sell 40 billion rupees of 7.83 percent 2018 bond, 50 billion rupees of 8.79 percent 2021 bonds and 30 billion rupees of 8.97 percent 2030 bond.

India plans to borrow up to 500 billion rupees ($9.48 billion) by pledging property and shares to bridge the government's budget deficit, Bloomberg reported.

The Reserve Bank of India said on Thursday achieving the fiscal deficit target of 4.6 percent of GDP in 2011/12 may be a challenge because of a slowdown in revenue collections and higher spending on subsidies.

Copyright Reuters, 2011