Indian bonds rise four sessions in a row
Mumbai: Indian bonds rose for the fourth straight session, sending benchmark yields tumbling to a fresh 14-month low on expectations the central bank would cut policy rates as early as next month, while falling crude prices aided sentiment.
Foreign investors continued to buy, with net purchases of Indian debt in the last 15 out of 16 trading sessions. On Monday, foreign institutional investors (FIIs) bought $15.85 million worth of bonds, as per regulatory data.
The gains came despite the Reserve Bank of India's (RBI's) move to drain liquidity in the system through the sale of Rs.10,345 crore worth of debt via open market operations and call rates trading at 8.00/8.05%, signalling investors were not worried about cash flow.
"At current levels, the market is factoring in a 25 basis point rate cut in the next policy," said Baljinder Singh, a senior dealer with Andhra Bank in Mumbai.
"I don't see a sharp ral...
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