BLBG: India's 13-Year Bonds Decline as Lower Yields May Damp Demand
By Anil Varma
Oct. 22 (Bloomberg) -- India's 13-year bonds fell for the first time in five days on speculation investors will reduce purchases after yields on the securities had the biggest four- day decline in 2 1/2 years.
Banks and securities companies may have scaled back investment in debt due in 2021 after yields lost 69 basis points in the four trading days through Oct. 20. India's bond market was shut yesterday as a strike at the central bank disrupted payment and settlement systems.
The yield on the 7.94 percent note due May 2021 rose 6 basis points to 7.76 percent as of 9:30 a.m. in Mumbai, according to the central bank's trading system. The price fell 0.51 per 100 rupee face amount to 101.39. A basis point is 0.01 percentage point.
To contact the reporter on this story: Anil Varma in Mumbai at avarma3@bloomberg.net.