India, US 10-yr bond yield spread at its lowest since 2004

FOREIGN INVESTORS WERE NET SELLERS IN THE INDIAN DEBT MARKET IN APRIL, OFFLOADING ₹14,379 CR WORTH OF ASSETS

- Auhona Mukherjee & Sreedev Krishnakumar

NEW DELHI: The yield spread between 10-year US Treasuries and Indian benchmark bonds narrowed to the lowest since July 2004 due to the recent sell-off leading to higher yields in the US bond market and easing yields in India. The lowest gap between both since 2004 was recorded on Wednesday at 1.6 percentage points with the US Treasury yield at 4.6% and the Indian bond yield at 6.3%, according to data from Bloomberg. Previously, the lowest difference till date was recorded on May 13, 2004 when the US 10Y yield was at 4.5% and the India 10Y was at 5.2%, bringing the yield spread to a gap of 0.7 percentage points.