Buy 3-year India debt: StanChart

Buy 3-year India debt: StanChart
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First Published: Thu, Apr 17 2008. 11 29 PM IST
Updated: Thu, Apr 17 2008. 11 29 PM IST
Mumbai: Investors should buy India’s three-year bonds because the government will sell less of the securities and demand from banks may increase as deposits rise, the UK’s Standard Chartered Plc. said.
The government will reduce sales of securities with a maturity of up to four years after successfully draining funds from the financial system, the bank estimates. Three-year yields have climbed 45 basis points this month, reaching 8.08% on Wednesday, the highest since June.
“Three-year paper above 8% is definitely a good buy,” said Manoj Swain, head of interest rate trading in Mumbai at StanChart, which makes most of its profit in Asia.
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First Published: Thu, Apr 17 2008. 11 29 PM IST