India’s bonds due 2022 rose, sending the benchmark yield to the lowest in almost three years, on optimism cooling inflation will allow the central bank to add to this year’s three interest-rate cuts. The rupee weakened.
The ringgit strengthened to its highest since August 2011 and government bonds rose after Malaysian Prime Minister Najib Razak’s coalition retained power in the weekend poll, bolstering the outlook for economic reforms.
Investors should employ a so-called “butterfly” swap strategy in India to profit from higher borrowing costs as a recovery in Asia’s third-largest economy stokes inflation, according to Morgan Stanley.
India forecast the weakest economic growth in a decade as subdued investment and elevated inflation add pressure on Prime Minister Manmohan Singh to extend policy changes and revive his development agenda.
Indian government bonds advanced, pushing the 10-year yield to the lowest in almost three months, after the nation sold 227.8 billion ($4.3 billion) of debt- purchase permits to foreign investors yesterday. The rupee fell.
Rohit Arora, chief executive officer of Biz2Credit, discusses the "Capitalize Your Dream" contest, which will award $1,200 in finance packages to three small businesses. Arora talked to Bloomberg's Kathleen Hays and Vonnie Quinn on "The Hays Advantage" on Bloomberg Radio on May 24, 2012.