By Anoop Agrawal Oct. 31 (Bloomberg) -- Indian bonds gained for a third day on speculation policy makers will boost cash in the money market after the overnight lending rate climbed to a three-week high. The rate at which banks lend to each other rose as high as 21 percent today, the most since Oct. 10, according to data compiled by Bloomberg. The yield on the benchmark 8.24 percent note maturing in April 2018 dropped 7 basis points, or 0.07 percentage point, to 7.45 percent as of 9:54 a.m. in Mumbai, according to the central bank's trading system. The price rose 0.48 or 48 paise per 100 rupee face amount, to 105.33. Markets were closed yesterday for a holiday. To contact the reporter on this story: Anoop Agrawal in Mumbai at aagrawal8@bloomberg.net.

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