MUMBAI: India's benchmark 10-year bond rose to its highest in more than 15 months on Tuesday as market sentiment continued to be bolstered by hopes that the Reserve Bank of India will cut interest rates as early as February.
Traders said the fall in global crude oil prices is raising expectations that domestic inflation may continue to remain subdued.
Some investors have even started betting on a 50-basis point rate cut in February and as much as 100 bps in all of 2015.
The benchmark 10-year bond yield was trading at 8.15 percent, after falling to as low as 8.14 percent, its lowest since Aug. 8, 2013.
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