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 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 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 benchmark bonds completed their best month since June after the central bank cut interest rates for the first time since April.
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 dropped for a fourth day on concern the central bank will increase interest rates at its policy review next month to cool inflation.
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 10-year bonds headed for their third weekly loss in four on concern the central bank will raise interest rates unless inflation eases. The rupee declined.
"There was a sense of fatigue after the sharp rally in yields and we have seen some value buying in the last two days."
- Anoop Verma on Apr 09, 2014