Government bonds fall; foreigners keep selling rupee debt

Indian government bonds fell on Friday hit by fears foreign investors would continue to sell debt as the rupee weakens towards record lows and as US Treasury yields surge, narrowing the differential with domestic debt yields.

 

India's benchmark 10-year bond yield rose 4 basis points to 7.43%. Foreign investors were net sellers of $64.94 million in domestic debt on Wednesday, according to the latest available regulatory data.

 

The Reserve Bank of India will sell Rs 150 billion  of debt later in the session.