RBI Rejects Bids for Benchmark Bond in India as Yields Surge
- Benchmark 10-year yields post worst weekly drop since April
- Yields will move higher as RBI delays support: ICICI PD
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India’s central bank rejected all bids for its benchmark bond at an auction after yields jumped on concern the regulator’s measures to support the debt market fell short of expectations.
The yield on the benchmark 10-year bond rose to its highest in over five months in early trading while corporate notes had their biggest weekly loss since May. Traders were disappointed that Reserve Bank of India Governor Shaktikanta Das on Friday didn’t announce a widely expected debt-purchase calendar to help absorb the government’s massive borrowings. At an auction later in the day, the central bank rebuffed bids for two notes.