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Bonds Gain in India as Central Bank Signals More Debt Purchases

  • RBI holds rates but cuts bond-holding ratio to boost lending
  • More OMO purchases may be needed till March: deputy governor
Reserve Bank Of India Governor Unveils Interest-Rate Decision

Photographer: Dhiraj Singh/Bloomberg

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Sovereign bonds rallied in India, with 10-year yields falling to the lowest since April, after the central bank said that it may need to extend its open-market debt purchases until March.

The Reserve Bank of India’s commitment for buying more debt is a “delight for markets,” Vivek Rajpal, rates strategist at Nomura Holdings Inc., said after the authority kept interest rates unchanged for a second straight meeting.