Indian bonds rose the most in four months after the central bank announced new measures to boost liquidity in the banking system, including purchases of government bonds and a foreign exchange swap.
The yield on the benchmark 10-year note fell as much as eight basis points on Wednesday, the most since Aug. 14, to 6.56%.
The Reserve Bank of India said after market hours on Tuesday that it would buy 2 trillion rupees ($22 billion) worth of bonds in four tranches during December and January. The RBI also said it will conduct a $10 billion foreign exchange swap next month.
