Biggest Investors Honor India Debt Rally With Record Bond Sales
- State-run banks sold net 130.5 billion rupees of debt Tuesday
- Ten-year yield drops to the lowest level since Sept. 2009
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Indian state-run banks sold a record amount of sovereign bonds on Tuesday, reaping rewards from a rally that’s sent benchmark yields to their lowest levels in seven years.
National lenders, the biggest holders of government debt, were sellers of a net 130.5 billion rupees ($2 billion) of securities, the most in Clearing Corp. of India data compiled by Bloomberg, going back to 2006. The Reserve Bank of India said Tuesday its policy stance remains accommodative and it will conduct more open-market bond purchases, spurring the biggest gain in benchmark 10-year notes in almost two weeks. It left key interest rates unchanged.