Indian Government Bonds Drop on Speculation Banks Will Sell to Raise Cash

(Bloomberg) -- India's 10-year bonds fell for a third day as banks sold debt to raise cash, after increasing reserves to meet new central bank regulations.

Yields rose to the highest in more than three weeks after banks were required to raise cash set aside as reserves to 6.5 percent of deposits from 6.25 percent, starting from April 28. That drained 77.5 billion rupees ($1.9 billion) from the banking system. Bonds also fell on concern payment for government debt sold on April 27 will further reduce banks' spare cash.


Read more at Bloomberg Bonds News