Traditionally, September marks the beginning of a long ‘festival season’ in India and this year, it seems that the sovereign bond market has joined the party.
On the face of things, festivities would seem incongruous as India’s economy is still struggling from the ravages of the Covid-19 pandemic. But, when it comes to the Indian bond market, more often than not, bad news is good news (an irony which is not lost on traders).
Yield on the 10-year benchmark 6.10%, 2031 government bond has dropped 3 basis points since Thursday as the market has digested some good news.
