Indian Bonds Drop on Concern Increase in Auctions to Drain Funds at Banks

(Bloomberg) -- Indian bonds fell for a third day on
concern an increase in debt auctions will drain the spare funds
at banks, the biggest buyers of government securities.

Investors demanded higher yields at a 90 billion rupee
($2.2 billion) debt sale yesterday, pushing 10-year yields to
the highest in a week. The government will today sell 65 billion
rupees of treasury bills and 50 billion rupees of two-year notes.
The central bank said last week it will raise the amount of
treasury bills it will auction this week by more than 50 percent.


Read more at Bloomberg Bonds News