Oil\u2019s price collapse is driving India\u2019s sovereign bonds to their best quarter in more than a year. Expectations of rate increases by the central bank have weakened after the slump in the price of Brent crude - India\u2019s top import - and the easing in retail inflation to a 13-month low. The debt-buying support from the Reserve Bank of India has given investors another reason to cheer the end of the longest stretch of losses since 2011. \u201cGiven that rates are likely to remain unchanged on the back of a decline in inflation and a significant drop in oil prices, and growth likely to slow down, the outlook for bonds is fairly sanguine,\u201d said Suyash Choudhary, head of fixed-income funds at IDFC Asset Management Co., which oversees 697 billion rupees ($9.9 billion). READ ALSO |\u00a0Share market LIVE updates: Sensex drops over 60 pts, Nifty slips below 10,500 on sell-off in IT, pharma stocks The RBI in October held rates after back-to-back hikes since June, and is due to review policy next month. A report on Nov. 30 may show economic growth in the July-September period was the slowest in three quarters, according to a Bloomberg News survey. There\u2019s optimism the data would prompt the central bank to keep financial conditions a bit easier. The 10-year yield has slid more than 50 basis points from a four-year high in September and the rupee is Asia\u2019s best performing currency this month, as global funds returned to the nation\u2019s equity and debt markets. The 30-stock S&P BSE Sensex has risen about five percent from a seven-month low reached end-October. To be sure, the political uncertainty because of ongoing state polls and their impact on the national election in mid 2019 may inject some anxiety from time to time, said Choudhary, who\u2019s bullish on five-year sovereign bonds. \u201cI wouldn\u2019t worry too much about the uncertainty premium and would rather focus on the growth-inflation trade-off as it\u2019s evolving,\u201d he said. Indian markets were closed Friday for a local holiday.