By Anoop Agrawal

Jan. 30 (Bloomberg) -- India's 10-year
bonds<http://www.bloomberg.com/apps/quote?ticker=GIND10YR%3AIND> were
set for their biggest monthly loss in at least a decade as concerns mounted
that the government will borrow more than planned to finance additional
spending.

Benchmark yields climbed to the highest level in three weeks on speculation
investors sold to raise cash before a government debt auction today. Bonds
ended a five-month rally after the central bank this week refrained from
cutting interest rates and said the budget deficit will be "substantially
higher" than estimates.

The yield on the 8.24 percent note due April 2018 surged 91 basis points
this month to 6.16 percent as of 9:46 a.m. in Mumbai, according to the
central bank's trading system. The price fell 7.34 rupees per 100-rupee face
amount, to 114.45. A basis point is 0.01 percentage point.

The government plans to offer 40 billion rupees ($815 million) of a new
10-year security and 30 billion rupees each of the 7.56 percent bonds due
2014 and the 6.83 percent notes maturing in 2039 at an auction today.


http://www.bloomberg.com/apps/news?pid=20601091&sid=aEXpQikmq7Jg&refer=india

-- 
We reap what we sow. We are the makers of our own fate. None else has the
blame, none has the praise.
Swami Vivekananda

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