The announcement comes as a disappointment for traders, who were expecting index inclusion in this review
The yield on benchmark 10-year bonds surged as much as 12 basis points to 7.48%, the highest since June. Indian bonds tumbled as JPMorgan Chase & Co. refrained from adding local government bonds to its emerging markets debt index. The rupee also edged lower. Higher US Treasury yields and oil prices also contributed to the move, according to traders.