India's yield curve sees steepest rise in nine years, set to go up further

India’s yield curve rose to its steepest in nine years as bets mounted on further monetary easing and fiscal stimulus following the country’s deepening economic slowdown.

The yield spread between the most-traded 10-year notes to two-year debt is at its highest since 2010 on concerns the government will expand record bond sales. Firstrand Bank Ltd. expects the difference to widen by as much 20 basis points from Monday’s 115.

“As long as there is a lack of clarity on how the fiscal deficit targets will be met and as long as the RBI maintains it’s not bothered about market yields,