India’s 10-year government bonds declined for a third day on speculation demand will weaken as investors await a report this week on gross domestic product.
The $1.9 trillion economy probably expanded 4.9 percent in the three months through June, after a 4.6 percent gain the previous quarter, according to DBS Bank Ltd. Standard & Poor’s Singapore-based Associate Director of Sovereign Ratings Agost Benard said in an Aug. 22 interview that the government’s efforts to cut the budget deficit are positive for the country’s credit profile.
The yield on the 8.4 percent bonds due July 2024 rose one basis point, or 0.01 percentage point, to 8.53 percent as of 10:13 a.m. in Mumbai, according to the central bank’s trading system. The rate has climbed five basis points from this month’s low of 8.48 percent on Aug. 20.
One-year interest-rate swaps, derivative contracts used to guard against swings in funding costs, advanced one basis point to 8.46 percent.
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