Friday 16 March 2012

Bond yields and overnight indexed swap rates rose sharply

Bond yields and overnight indexed swap rates rose sharply after the federal government set its fiscal deficit target for 2012/13 at 5.1 percent of the gross domestic product in the annual budget on Friday.

At 12:20 p.m. (0650 GMT), the 10-year benchmark bond yield was at 8.42 percent, up 9 basis points (bps) from its level before the deficit estimate was released.

The benchmark five-year swap rate rose 6 bps to 7.61 percent, and the one-year rate rose 7 bps to 8.22 percent.

India's main share index and the rupee remained broadly unchanged.

News Bureau,

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