By Anil Varma Dec. 18 (Bloomberg) -- India’s 10-year bonds rose, pushing yields to a 4 1/2-year low, on speculation slowing inflation will allow the central bank to reduce interest rates. The notes gained for a ninth day, the longest winning streak in more than three months, before a government report today that economists said will show wholesale prices climbed at the slowest pace since March. Bonds also gained after the U.S. Federal Reserve cut its benchmark rate to a record low this week, adding pressure on central banks worldwide to lower borrowing costs. The yield on the 8.24 percent note due April 2018 dropped 16 basis points to 5.64 percent as of 10:22 a.m. in Mumbai, the lowest since June 2004, according to the central bank’s trading system. The price climbed 1.25 per 100-rupee face amount to 118.67. A basis point is 0.01 percentage point. To contact the reporter on this story: Anil Varma in Mumbai at avarma3@bloomberg.net.

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