India 40-year bond yield hits highest level since 2018

India’s 40-year government bond yield jumped to its highest level in eight years on Friday as selling pressure continued across the yield curve.

The yield on the 40-year 7.71% 2066 bond reached 7.9254% after an auction, marking the highest level for a security of this maturity since November 2018.

The spread between the 40-year bond and the 10-year benchmark bond narrowed to 44 basis points on Friday, down from 62 basis points a month ago and 70 basis points two months ago.

The 40-year bond yield has increased by 49 basis points over the last 10 weeks, compared to a 70 basis point move in the benchmark note during the same period.