More people are losing their love for Indian bonds. The deserting of the Indian market by foreign investors comes at a time when the Centre is looking at tapping the bond market aggressively to finance its election-year spending. The rise in yields is due to a variety of reasons that have pushed both foreign and domestic investors to re-price Indian sovereign bonds. The yield on the 10-year Indian sovereign bond has dropped by more than 20 basis points since that day. Cutting down on market borrowing is a decision linked to the market’s ‘decision’ to punish the government for profligacy.

Source: The Hindu March 29, 2018 00:22 UTC