Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
The Indian government bonds gained Monday as investors speculated that the Reserve Bank of India (RBI) will lower its key interest rate in its monetary policy decision, which scheduled to be released on October 4.
Also, treasury prices recovered following increased buying by investors as tension waned off surrounding Indo-Pak border issues after Indian forces conducted "surgical strikes" on suspected militants preparing to infiltrate from Pakistan-occupied Kashmir.
The yield on the benchmark 10-year bonds, which moves inversely to its price, fell 5 basis points to 6.913 percent, the super-long 30-year Treasury yield dipped 3-1/2 basis points to 7.144 percent and the short-term 2-year note yield slid more than 4 basis points to 6.682 percent by 07:00 GMT.
India's monetary policy committee will decide the policy interest rate at the scheduled October 4 review, and the newly-appointed external members to the panel would be at an arm’s length from the government. Also, interest rate reduction is around the corner amid expectations that inflation will decelerate further in coming months.
According to Reuters, India’s newly formed six-membered MPC meets today and tomorrow to decide on interest rates amid expectations that inflation will ease to the Reserve Bank of India’s 5 percent aim for March 2017, which will likely allow them to announce a 25 basis point interest rate cut tomorrow.
India is due to raise the limit for foreign investment in government bonds in two tranches of 100 billion rupees each, from October 3, 2016 and January 2, 2017, according to a statement by the RBI late September 30, they added.
Meanwhile, the Sensex rose 1.05 percent or 291.95 points to 28,157.95 and Nifty-50 futures traded 0.89 percent higher or 77 points at 8,727 by 07:00 GMT.
