Sunday, June 3, 2007

Indian Government Bonds Drop on Concern Central Bank Will Drain Spare Cash

(Bloomberg) -- India's bonds fell on concern the
central bank will drain surplus cash from the financial system to
curb inflation.

Ten-year yields, which move opposite to prices, rose after
the Reserve Bank of India increased the size of its weekly
Treasury bill sale on June 6 by more than 50 percent. The bank
also announced a bond sale of 50 billion rupees ($1.2 billion)
under the so-called stabilization plan to drain spare cash. The
measures were announced after the market closed on June 1.


Read more at Bloomberg Bonds News

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