Sovereign Indian bonds reverse losses on talk of help from RBI

Sovereign Indian bonds reversed losses amid speculation the central bank may be buying to help steady yields after the announcement of an economic package fanned concerns about a wider budget deficit.
 

Yields on 10-year bonds slid as much as eight basis points to to 6.08 per cent after surging by as much as 12 basis points earlier. Bonds sold off Monday after the administration raised its annual borrowing plan by more than half late Friday.
 

“There’s speculation the sharp reversal is due to the central bank being on the buying side in a market that has enough reasons to decline,”