Indian bonds are the worst-performing in Asia and they may fall further

Indian bonds, the worst performer this month among Asian peers, may have further to fall with no let-up in the bad news weighing on investors.

The benchmark 10-year debt sold off Wednesday evening after S&P Global Ratings warned of a downgrade, dealing a blow to an already frail sentiment. The Reserve Bank of India’s shock hold on rates had sparked the worst weekly fall in bond prices in more than one-and-a-half years.

S&P’s red flag adds to lingering concerns about a wider fiscal deficit, rising inflation, volatile oil prices and the absence of bond purchases by the RBI. No wonder global funds