MUMBAI: Indian government bonds rallied on Wednesday after the central bank deferred a weekly debt sale and as easing retail inflation led to hopes that the central bank would keep interest rates on hold at its policy review later this month.
The benchmark 10-year bond yield fell 5 basis points to 8.66 percent. Bond markets were closed on Tuesday for a local holiday.
The central bank said late on Monday it had deferred an auction worth 150 billion rupees ($2.42 billion) scheduled to be held on Friday after reviewing the government's cash position and funding requirement.
Meanwhile, data late on Monday showed consumer inflation eased to a three-month low in December as vegetable prices fell, giving some relief to policymakers struggling to contain price pressures as growth hovers at a decade low.
India is due to release wholesale inflation data later in the day.
Comments
Comments are closed for this article.