Bonds set to end year on a high; Pimco may raise holdings of rupee debt

A late-2018 plunge in oil, the biggest bugbear for Indian assets for much of the year, helped drive consumer inflation to a 17-month low

The New Year promises to bring more gains for the sovereign bond market, which has rallied hard and broken a five-quarter losing streak to end 2018 on a high.

Pacific Investment Management Company (Pimco) says it may raise its holdings of rupee debt, which has topped returns among major emerging Asian markets in the second half of the year. Some analysts predict the benchmark 10-year yield to drop below 7 per cent to levels not seen since November 2017, as rising bets for interest-rate cuts add more legs to an advance spurred by falling oil prices and the central bank’s bond