India's bond rally could stall as investors worry about govt's fiscal math

Bond traders have already shown signs they can be nervous about the nation's financial health

India’s bond rally is predicted to stall as investors turn jittery about the government’s fiscal discipline before next month’s federal budget.

The 10-year yield will stay close to current levels at 6.98% by end of June, according to a Bloomberg survey, bringing an end to the slide of about 50 basis points over the past six weeks. Yields have tumbled as the Reserve Bank of India cut interest rates, Prime Minister Narendra Modi won a thumping election victory and slowing global growth spurred a global debt rally.

Bond traders have already shown signs they can be nervous about the nation’s