- 10-year sovereign bonds climb for first time in six days
- Easing of FDI rules adds to positive sentiment, RBL Bank says
India’s 10-year sovereign bonds rose as yields at a one and a half month high attracted buyers.
The yield on the securities due May 2025 fell four basis points to 7.68 percent in Mumbai after rising 10 basis points over the previous five days, prices from the central bank’s trading system show. The rate rose four basis points to 7.73 percent Monday, the highest closing level since Sept. 28. Bonds also gained as Prime Minister Narendra Modi’s government eased some foreign direct investment rules, according to RBL Bank Ltd.
“Investors found the yield levels above 7.70 percent quite attractive and that led to value buying,” said Sagar Shah, vice president of treasury at RBL Bank in Mumbai. Easing FDI rules added to the positive sentiment, he said.
The rupee rose 0.2 percent to 66.3125 a dollar in Mumbai, prices from local banks compiled by Bloomberg show. The currency declined 1 percent, the most since August, on Monday.