Rajan Sparks Bond Rally Before Final RBI Meeting
Raghuram Rajan said he enjoyed every minute as Reserve Bank of India governor. Bond investors have reason to feel the same way. Presiding over his final interest-rate review, Rajan’s announcement of more open-market debt purchases revived a rally that had been losing steam in recent days after benchmark 10-year notes capped their best month since 2013 in July. Yields dropped the most in almost two weeks on Tuesday to reclaim three-year lows as the RBI said its policy stance remains accommodative. Indian sovereign bond returns under the inflation-busting governor were more than double that of the previous three years. Capital Economics Economist Gareth Leather discusses with Bloomberg's Francine Lacqua on "The Pulse."