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Bond Party Endures in India as Central Bank Takes a Dovish Turn

It didn’t matter that India’s central bank left the cap on foreign ownership of sovereign debt unchanged. That the authority unexpectedly cut its inflation forecast was enough to keep the party going.

The yield on the benchmark 10-year bond fell 17 basis points toward a four-month low of 7.13 percent, as traders took the Reserve Bank of India’s outlook on consumer prices to mean that an interest-rate increase isn’t imminent.