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Indian Bonds Advance Most in a Month as Monsoon Rains Progress

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Indian sovereign bonds due in 2024 climbed, driving the yield down by the most in nearly a month, as progress in monsoon rains eased concern over inflation.

Seasonal showers have been 13 percent above average since June 1, the weather bureau said on its website. It has forecast the June-September monsoon rainfall to be 88 percent of a 50-year average this year. The yield on the 2024 notes jumped 29 basis points in the last two weeks on speculation deficient rains will hurt crop output and stoke food costs. Consumer prices rose 5.01 percent in May from a year earlier, after a 4.87 percent increase in April, official data showed on Friday.