Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

India 10-Year Bonds Gain as Europe Crisis Boosts Rate-Cut Chance

India’s benchmark bonds due 2022 advanced, pushing the yield down from a one-month high, as fresh concern Europe’s debt crisis will worsen added to speculation the central bank will cut borrowing costs again.

Spanish 10-year bond yields rose to a seven-week high yesterday as Prime Minister Mariano Rajoy struggles to impose austerity and restore confidence amid corruption allegations. The Reserve Bank of India lowered interest rates for the first time since April last week and cut the amount of deposits lenders must set aside as reserves.

The yield on the 8.15 percent bonds due June 2022 fell two basis points, or 0.02 percentage point, to 7.92 percent in Mumbai, according to the central bank’s trading system. The rate of 7.94 percent yesterday was the highest since Jan. 3.

“Renewed European debt crisis concerns would affect the global outlook,” said Rees Kam, a strategist at SJS Markets Ltd., a Hong Kong-based financial services company that specializes in fixed income. “That reinforces rate-cut expectations. Inflation has slowed quite a fair bit in India.”

Wholesale prices rose 7.18 percent in December, the least in three years, the government reported last month.

“There is an increasing likelihood of inflation remaining range-bound around current levels going into 2013-2014,” the RBI said in a statement on Jan. 29. “This provides space, albeit limited, for monetary policy to give greater emphasis to growth risks.”

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.