BLBG: India's Bonds Advance as Banks May Have More Cash to Buy Debt
By Anoop Agrawal
Oct. 27 (Bloomberg) -- India's bonds gained on speculation banks have more money to buy debt after the central bank this month cut cash-reserve requirements.
Commercial banks parked money with the central bank for four straight days through Oct. 24 by purchasing securities at reverse-repurchase auctions, data from the Reserve Bank of India show. Bonds also gained as a decline in crude oil prices added to investor optimism that inflation will slow.
The yield on the benchmark 8.24 percent note maturing in April 2018 fell 3 basis points to 7.76 percent as of 9:38 a.m. in Mumbai, according to the central bank's trading system. The price rose 0.22, or 22 paise per 100 rupee face amount, to 103.15. A basis point is 0.01 percentage point.
To contact the reporter on this story: Anoop Agrawal in Mumbai at aagrawal8@bloomberg.net;
