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Softer oil lifts India government bonds after Fed hike

Indian government bonds trimmed early losses as oil prices pulled back, supporting short-covering and easing concerns about a potential Reserve Bank of India rate hike following the Federal Reserve’s first increase in more than three years.

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Indian government bonds recovered from early losses on Thursday as weaker oil prices prompted short-covering and reduced concern that the Reserve Bank of India may hike rates after the Federal Reserve’s first increase in more than three years. 94% 2036 bond was the focus of the move.