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 fell, with the yield climbing to a more than two-week high, as the rupee slumped to its lowest level since November on concern a sell-off in emerging-market assets will worsen.
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 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 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 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.
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 government bonds completed a fourth weekly loss after the central bank raised borrowing costs for the ninth time since the start of last year.
"Oil's move continues to support the Indian bond markets."
- Anoop Verma on Dec 29, 2014