The budget deficit in India increased to its highest level in three years to reach 5.9% of GDP during the year ending March. While the debt sales soared to 12%, sending the bond yields to their highest level in two months.

The budget deficit missed the Indian Finance Minister's goal and came higher than the target by 1.3%, while the foreign reserves fell by $ 1.03 billion to reach $294 billion. Indian Finance Minister said yesterday that he expected India's central bank to lower interest rates in the coming months in an attempt to support the economy, which slowed recently.