Deepest India bond rout in 2 decades shows no sign of easing

Mumbai

INDIAN bonds are sliding at the fastest pace in almost two decades, and the sell-off isn't showing signs of easing.

The yield on benchmark 10-year notes, up for a fifth month in December, will rise further by end of March, according to 10 of 15 respondents in a Bloomberg survey. Some see it going from 7.25 per cent on Thursday to as high as 7.5 per cent, as a potentially wider fiscal deficit risks more debt sales by the government and elevated oil prices threaten to fan already-rising inflation.