Indian government bonds surged on Wednesday, with the 10-year yield posting its biggest one-day decline in a month, while swap rates fell after the central bank chief said it was "premature" to talk about rate hikes.
Softer oil prices also buoyed sentiment, pulling yields down to the lowest levels in more than three months. Speaking to television channel ET NOW, Reserve Bank of India Governor Sanjay Malhotra said the central bank was watching for second-round effects of higher oil prices on inflation in the broader economy before taking a call on rates.
