INSUBCONTINENT EXCLUSIVE:
MUMBAI: With benchmark local debt yielding about 5 percentage points more than comparative US bonds, India should continue to draw global
Since the first week of April, Indian yields have climbed 70 basis points to 7.85%
During the period, US Treasury yields shot up to as high as 3.12%, but have since cooled to 2.91%
The sudden increase in Indian yields may have prompted the recent exits of overseas cash from India, but the fat spread should act as
sufficient incentive for global funds to return.
An ET analysis shows, for instance, that Brazil and Turkey are offering more than 10%
USD-INR exchange rate remains stable.
