India’s 10-year bonds rose, pushing their yield to the lowest level in six weeks, on speculation the central bank will temper the pace of interest-rate increases after boosting borrowing costs five times this year. The securities climbed for a seventh day, the longest winning streak for a benchmark note since November, after the finance ministry on Sept. 23 cut debt sales for the fiscal year ending March by 2 percent to 4.47 trillion rupees ($99 billion) and relaxed limits on foreign holdings of India’s bonds. The central bank increased the repurchase auction rate, at which it lends to banks, by 25 basis points to 6 percent from Sept. 17. “The Reserve Bank may go slow on the interest rate front,” said Mukesh Kumar, a fixed-income trader at State Bank of Bikaner & Jaipur in Mumbai. “The reduction in the borrowing program is also positive for bonds as it reflects improved government finances.” The yield on the 7.8 percent note due May 2020 fell one basis point to 7.85 percent as of 9:51 a.m. in Mumbai, according to the central bank’s trading system. The price rose 0.05, or 5 paise, per 100 rupee face amount, to 99.65. The cost of one-year interest-rate swaps, or derivative contracts used to guard against fluctuations in borrowing costs, decreased. The rate, a fixed payment made to receive floating rates, fell one basis point to 6.46 percent. To contact the reporter on this story: V. Ramakrishnan in Mumbai at rvenkatarama@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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