The new year promises to bring more gains for India’s sovereign bond market, which has rallied hard and broken a five-quarter losing streak to end 2018 on a high.
Pacific Investment Management Co. says it may raise its holdings of rupee debt, which has topped returns among major emerging Asian markets in the second half. Some analysts predict the benchmark 10-year yield to drop below 7 percent to levels not seen since November 2017, as rising bets for interest-rate cuts add more legs to an advance spurred by falling oil prices and the central bank’s bond purchases.
