Indian government bonds gained for a third straight session on Thursday as traders grew more confident of central bank buying support and ahead of another reduction in state debt auctions next week.
The benchmark 10-year 6.48% 2035 bond yield ended at 6.6352% after closing at 6.6536% on Wednesday. Yields move inversely to prices.
Speculation that the Reserve Bank of India was buying bonds in the secondary market strengthened after data showed investors in the “others” category, which includes insurers, pension funds, corporate firms and the RBI, bought 65.7 billion rupees worth of bonds on a net basis on Tuesday and Wednesday.