Indian bonds post worst week in nearly a year

Indian bonds fell for a second consecutive session, posting their worst weekly loss in nearly a year as foreign investors sold heavily on the back of a fall in the rupee to record lows and narrowing differentials with US Treasury yields. The yield on the benchmark 10-year government bond rose 12 basis points on the week, its biggest weekly rise since early August 2012.
The benchmark 10-year bond yield ended up 4 bps at 7.43 percent after moving in a 7.42 percent to 7.45 percent range. Total volume on the central bank's electronic trading platform was at a low 292.25 billion rupees, compared with the average 600 billion rupees in recent weeks.
Foreign funds have sold a net $5.33 billion since May 22, the day Fed Chairman Ben Bernanke first hinted at a stimulus withdrawal. Bigger falls in bond prices on Friday were prevented after India successfully sold 150 billion rupees in government debt, with no devolvements in the benchmark 10-year bonds. The benchmark five-year OIS rate ended steady at 7.25 percent, after hitting 7.30 percent, its highest since February 4.