India's Bonds Gain on Speculation Surplus Cash to Boost Demand for Debt

(Bloomberg) -- India's 10-year bonds rose on
speculation an increase in spare cash in the banking system will
boost demand for debt.

Yields, which move inversely to prices, dropped to near the
lowest in more than four months after a drop in interbank
lending rates and an increase in banks' bids to lend to the
central bank suggested there's more surplus cash. Bonds may also
gain on optimism slowing inflation and loan growth will allow
the central bank to refrain from raising interest rates.


Read more at Bloomberg Bonds News