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Bonds at 8-month high on RBI bond purchase hopes, inflation comments

Reuters  |  MUMBAI 

(Reuters) - Indian bonds rose to over 8-month highs as rate hike fears faded after the central promised to keep buying government bonds to infuse liquidity, and also mentioned the probability of changing its rate stance if risks do not mature.

The 10-year benchmark yield fell to as low as 7.38 percent, its lowest since April 11 and compared with its previous close of 7.44 percent.

The Indian rupee was weaker at 70.89 to the dollar tracking Asian peers, compared with 70.46 on Wednesday. Most Asian currencies fell on concerns over slowing global growth and a lack of resolution in the China-U.S. trade war.

kept interest rates unchanged on Wednesday, in a decision that was widely expected as has eased significantly, while it took steps to persuade banks to lend more in order to support an that has lost some momentum.

(Reporting by Suvashree Dey Choudhury; Editing by Sunil Nair)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 06 2018. 09:37 IST