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Best Asia Bond Rally Bolstered as India Minister Seeks Rate Cuts

Nirmala Sitharaman 

Nirmala Sitharaman 

Photographer: T. Narayan/Bloomberg

Indian bonds rallied after the Finance Minister said the economy could do with significant interest-rate cuts and ruled out any rethink over a proposed $10 billion overseas bond sale.

Benchmark 10-year yields dropped nine basis points to 6.43%, after climbing 16 basis points last week. Traders riding Asia’s best bond rally over the past month were caught wrong-footed last week after Reserve Bank of India Governor Shaktikanta Das said future cuts will be data dependent and a report showed Prime Minister Narendra Modi’s office was opposed to the issue of foreign-currency-denominated debt overseas.