Bulls flag rebound for India bonds with hopes pinned on RBI rate cut

Governor Shaktikanta Das has cut borrowing costs and eased lending norms to boost credit flow since taking charge at the central bank in December

The Reserve Bank of India's thrust on economic growth and beefing up cash in the banking system is signaling to some investors that the nation’s bonds are set to turn a corner.

Demand for rupee sovereign notes is seen picking up as bets emerge that the central bank will cut benchmark rates again next month while continuing to inject funds through its open-market debt purchases. One-year interest rate swaps have slipped nine basis points so far this month, signaling traders are pricing in odds of an easing.

With data on Monday set to show consumer-price gains stayed below the RBI’s 4% target