Indian bonds fell by the most in almost two years, as optimism from last week’s credit rating upgrade was overshadowed by fiscal concerns over the government’s plan to cut consumption taxes.
Yields on benchmark 10-year notes rose 10 basis points to 6.50% on Monday, the most since October 2023. That erased a decline of eight basis points on Thursday, driven by S&P Global Ratings’ upgrade. Indian markets were shut on Friday for a public holiday.