Accommodation policy cheers rupee bond bulls in India

Mumbai

RESERVE Bank of India governor Raghuram Rajan gave Indian bond bulls confidence to forecast an end to a two-month jump in yields.

Even as he left benchmark interest rates unchanged on Tuesday, Mr Rajan said inflation risks are to the downside and he "will use the space for further accommodation, when available".

That triggered the biggest rally in sovereign notes in two months. The benchmark 10-year yield, at 7.71 per cent on Wednesday, will drop another 16 basis points by …