Tide Is Turning for Indian Bonds on RBI’s Liquidity Bonanza
- Signs of economic revival spur hopes borrowing may not rise
- 10-year yield seen dropping to 5.75% by end-December: Survey
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India’s sovereign bonds are turning a corner as a supply overhang dissipates following a raft of liquidity measures from the central bank. Early signs of economic revival are also spurring hopes of an improvement in government finances.
The yield on India’s benchmark 10-year bond fell about 14 basis points over the past month to 5.9%, making it Asia’s best performer, with the bulk of its decline coming in after the Reserve Bank of India announced steps including doubling the size of its bond purchases in a policy address last week.