India's Bonds Advance as Increased Cash Surplus May Spur Demand for Debt

(Bloomberg) -- India's 10-year bonds rose for a
second day, sending yields to the lowest in more than five
months, on speculation increased spare cash in the banking
system will boost demand for debt.

Yields fell to near the lowest since Feb. 12 as a drop in
interbank lending rates and rising bids by banks to lend to the
central bank suggested surplus cash has increased. Bonds also
gained on optimism slowing inflation and loan growth will allow
the central bank to stop raising interest rates.


Read more at Bloomberg Bonds News