India's bond rally has room to extend, according to Citigroup Inc.'s local markets chief.Factors such as softening inflation, interest-rate cuts, improved liquidity point towards further gains for bonds.The benchmark 10-year bond yield is expected to drop to 6.20-6.25% from the current 6.40%.Indian assets are benefiting from factors such as reduced exposure to the US and the Reserve Bank of India's rate cuts.