(Bloomberg) -- Indian bonds fell for a third day on speculation lenders sold securities before a rule takes effect increasing the cash they are required to keep as reserves.
Banks, the biggest buyers of Indian government debt, have to set aside 6.25 percent of their deposits in cash from tomorrow, up from 6 percent. The reserve requirement will be further lifted to 6.5 percent from April 28. The two increases will drain 155 billion rupees ($3.6 billion) from the banking system, reducing funds available for buying bonds.
Read more at Bloomberg Bonds News
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