By Khushi Malhotra
Indian government bonds rose on Monday, tracking a rally in U.S. Treasuries as softer inflation and lower-than-expected state debt supply bouyed sentiment.
The yield on the benchmark 10-year note (IN063335G=CC) settled at 6.5198%. It ended at 6.5370% on Friday.
Bond yields move inversely to prices.
On Friday, U.S. Treasury yields dropped to multi-week lows, with the 10-year US10Y yield slumping nearly 10 basis points to 4.0510% after US President Donald Trump threatened to massively increase tariffs on Chinese imports.
Also aiding sentiment was India’s annual retail inflation (INCPIY=ECI) slowing to 1.54% in September, an eight-year low, as food prices eased, government data showed on Monday.
That was slower than 2.07% in August and a 1.7% estimate in a Reuters poll .
Separately, Indian states are set to sell bonds worth 128 billion rupees ($1.44 billion) on Tuesday, boosting sentiment as it…
