Crude oil the catch for India's bonds after inflation offers relief

India's sovereign bonds, which have dropped in 10 of the previous 12 months, rebounded in the past three days

Is it too early still to call time on the almost year-long slump in India’s bond market?

Consumer prices grew slower-than-expected in September, according to data late Friday, supporting a surprise decision by the central bank to hold rates. With the Reserve Bank of India set to spend 360 billion rupees ($4.9 billion) on bond purchases in October, and the rupee pulling back from a record low, bond traders are turning their focus on where crude oil prices are heading.

“The rupee has behaved well in recent days, as well your CPI, and we have RBI OMO bond purchases this