India's bonds rose on Thursday after inflation eased sharply in November, bolstering expectations of a rate cut sooner than expected, while the rupee also strengthened as global trade tensions eased.

The 10-year benchmark bond yield fell to 7.38 percent in early trade from 7.41 percent in the previous session, while the rupee was at 71.70 to the dollar, compared with 72.01 on Wednesday.

India's November inflation fell to a 17-month low of 2.33 percent, driven by falling food prices, and below the central bank's medium term target of 4 percent.

(Reporting by Suvashree Dey Choudhury; Editing by Subhranshu Sahu)

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