The yield on India’s 10-year government bonds rose the most this month as industrial output beat estimates, spurring speculation the central bank will refrain from cutting interest rates next week.
India’s benchmark bonds completed their best month since June after the central bank cut interest rates for the first time since April.
India’s bonds were little changed, with benchmark yields near a 17-month high, before a central bank policy meeting tomorrow as economists predicted Governor Duvvuri Subbarao will raise interest rates to damp inflation.
India’s 10-year bonds gained, pushing yields to the lowest level in almost nine months, on optimism debt purchases by the central bank will ease a cash squeeze.
India’s 10-year bonds gained for a 10th day, the longest winning streak since November 2009, on optimism federal debt sales will remain within target as public finances improve.
India’s 10-year bonds completed the biggest weekly gain in almost two months on speculation the central bank will refrain from raising interest rates further amid panic in global financial markets.
India’s 10-year bonds dropped for a fourth day on concern the central bank will increase interest rates at its policy review next month to cool inflation.
The yield on India’s 11-year bond held near a six-week low on speculation demand for debt in the secondary market is increasing due to the absence of new offerings for at least the next month.
India’s inflation rate fell below bond yields for the first time in two years as international investors add to record holdings of the nation’s debt.
India’s government bonds completed a fourth weekly loss after the central bank raised borrowing costs for the ninth time since the start of last year.
"Since the output was more than expected, there is a question mark on whether there will be a rate cut this time."
- Anoop Verma on Mar 12, 2013