BLBG: Indian Bonds Rise as Yields Near Highest in 2 Weeks Spur Demand
India’s 10-year bonds gained for a second day on speculation demand for the securities increased after yields rose to the highest in almost two weeks on Jan. 21.
Banks and securities firms may have increased investments as yields on benchmark notes have added 54 basis points this month. A basis point is 0.01 percentage point.
The yield on the benchmark 8.24 percent note due April 2018 fell 2 basis points to 5.79 percent as of 10:23 a.m. in Mumbai, according to the central bank’s trading system. The price rose 0.10, or 10 paise per 100 rupee face value, to 117.3. A basis point is 0.01 percentage point.
The cost of five-year swaps, or derivative contracts used to guard against rate fluctuations, was little changed. The rate, a fixed payment made to receive floating rates, was at 4.74 percent.
