Indian bond yields still attractive than US: Chidambaram

Moneycontrol Bureau

Finance Minister P Chidambaram said that the Indian bond yields were still attractive to the investors as compared to the US. This was despite a gap of 160 basis points (bps) between the US and the Indian bond yields.

The 10-year government securities (G-sec) bonds had fallen by 93 basis points (bps) since August 2012 at 7.22 percent in India while the US yields went up by 66 bps, said Chidambaram while addressing a press conference. Also read: P Chidambaram: Will leave no stone unturned to achieve revenue targets Foreign institutional investors (FIIs) had pulled out Rs 15,000 crore from the Indian debt market in the past couple of weeks due to the weak rupee and marginally higher output in US yields. He was confident of investors coming back to the country. He said, "Money will ultimately find a place where it can get the best returns. Even after the narrowing of the gap, Indian markets offer among the best yields in the world."  He also welcomed the Securities and Exchange Board of India (SEBI)’s decision on Wednesday to raise the FII limit in government bonds to USD 30 billion from USD 25 billion.