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Indian Bonds Rise Ahead Of February Inflation Data

Monday,   11-Mar-2019   10:20 AM (IST)

Indian government bonds rose in morning trade as investors expected retail inflation to stay benign in February, cementing expectations for another rate cut in April. The benchmark 7.17% bond maturing in 2028 changed hands at 97.76 rupees, yielding 7.52%, at 10:10 a.m. in Mumbai against 97.68 rupees, and a 7.53% yield, on Mar. 8. The 7.26% bond maturing in 2029 was at 99.37 rupees, yielding 7.35%, against 99.26 rupees, and a 7.37% yield, at the previous close. India's general election will take place in seven phases from Apr. 11 to May 19 and the results would be declared on May 23, the election commission said yesterday. Supply worries continue to impact bonds. The federal government may borrow around 60% of the 7.10 trillion rupees of gross borrowings for fiscal year 2019-2020 in its first half to meet part-redemption, expenditures for welfare schemes and keep the fiscal deficit in check, according to a report by news agency IANS. The government is due to borrow 180 billion rupees via bonds this week as well as next week, the highest quantum for a weekly auction since January 2018. Indian states will borrow 190 billion rupees through bonds tomorrow.