The 11-year bond held near this year's lowest level on speculation demand for the securities will improve as the government reduces debt sales.
Asia's third-largest economy plans to borrow Rs 4.17 lakh crore ($93 billion) in the fiscal year beginning April 1, down from an estimated Rs 4.47 lakh crore this year, Finance Minister Pranab Mukherjee said February 28. Average daily borrowings by the nation's lenders from the central bank declined to Rs 58,000 crore this month from Rs 77,900 crore in February and Rs 91,300 crore in January, data from the Reserve Bank of India show, indicating cash availability at banks is increasing.
The yield on the 8.08 per cent note due August 2022 was at 8.07 per cent as of the 5 pm close in Mumbai, compared with 8.06 per cent yesterday, which matched this year's lowest closing level, according to the central bank's trading system. A basis point is 0.01 percentage point.
Rupee gains
The rupee gained the most in more than a week, snapping a two-day loss, as a decline in oil prices tempered concern a surge in energy costs will slow the global economy.
The rupee strengthened 0.2 per cent to 45.005 per dollar at the 5 pm close in Mumbai, according to data compiled by Bloomberg, paring its loss this year to 0.7 per cent. Thio said the rupee will trade between 44.50 and 46 for the next month.
