Seven-Week Rally Ends as Indian Bonds Show Signs of Fatigue
- Rising oil deters investors from buying more debt: Edelweiss
- Rupee rises 0.2 percent to cap first weekly gain in three
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Indian sovereign bonds completed their first weekly decline since February amid speculation rising oil prices will fuel inflation and cloud the outlook for monetary easing.
This month’s 13 percent advance in Brent crude threatens to increase import costs for Asia’s third-largest economy that gets three quarters of its oil from overseas. That’s ended a seven-week debt rally -- the longest since 2012 -- that was sparked by the government’s budget restraint, slowing consumer-price gains and this year’s first interest-rate cut by the central bank.