Photo: HTMumbai: India’s 10-year bond yield on Thursday rose to a 22-month high and the rupee fell after the government increased its fiscal deficit target and borrowing programme. The 10-year bond yield rose to 7.531%, a level last seen on 16 March 2016, up 10 basis points from its Wednesday’s close of 7.43%. The government set the fiscal deficit target at 3.3% of the gross domestic product (GDP) for fiscal year 2019. The government also revised the fiscal deficit for 2017-18 to an estimated 3.5% of the GDP compared to the target of 3.2%. The 10-year bond yield was at 7.531%, a level last seen on 16 March 2016, up 10 basis points from its Wednesday’s close of 7.43%.

Source: Mint February 01, 2018 03:45 UTC