Indian bonds rally as traders spot a deal
Business
Indian government bonds jumped on Tuesday after traders snapped up bargains, with the 10-year yield dipping to 6.67%.
This boost was helped by fewer state bonds hitting the market before a ₹130 billion auction.
Why does this matter?
Lower bond yields can influence borrowing costs.
With big government borrowing and the budget coming up soon, investors see this as a chance to get in early.
What's behind the move?
After four days of selling (sparked by Bloomberg delaying Indian bonds' entry into its global index), yields steadied and buyers returned.
Plus, less state debt than expected made these bonds even more attractive right now.