India Bonds Complete Second Weekly Gain After Diesel Price Rise
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India’s 10-year government bonds completed a second weekly advance on optimism a diesel-price rise will bolster government finances and may increase the chance monetary policy will be eased.
The price of diesel, subsidized by the state, was raised 14 percent to 47 rupees ($0.86) a liter, the oil ministry said in an e-mailed statement yesterday. That’s the first increase since June 2011, according to Indian Oil Corp.’s website. The Reserve Bank of India, which last cut the repurchase rate by 50 basis points to 8 percent in April, will review policy Sept. 17.