A jump in US Treasury yields, pressure on the rupee and RBI's latest liquidity move have again brought focus back on India's 10-year bond yield and why markets track gap so closely
Government bond yields rose on Friday as crude and OIS rates climbed, before the RBI announced ₹1 trillion of bond purchases to ease liquidity tightness expected from March tax outflows
The higher-than-expected borrowing could mean weekly gross supply at Rs 37,000 crore, up from Rs 31,000 crore, assuming 47 auctions during the year, Nomura said in a report
India's benchmark 10-year government bond yield rose to a 10-month high of 6.68% amid rising US Treasury yields, while markets await cues from the state bond auction
The 10-year benchmark government bond yield has risen 14 bps since the RBI's 25 bps repo rate cut, as traders price in the move as the last of the cycle and foreign investors unwind positions
The govt's weekly bond auction saw strong demand with yields aligning to expectations, while the rupee recorded its weakest month since July amid dollar demand and cautious market sentiment
RBI's borrowing calendar extends weekly issuances into March and trims ultra-long supply, with the 10-year yield expected to open below 6.50 per cent on Monday
Bond market spooked by fears of potential VRRR auction as 5-year G-sec sees steepest 3-day spike in yields since 2022, amid uncertainty on RBI's liquidity stance
Foreign investors continued to pour money into government securities under the Fully Accessible Route (FAR), with net inflows reaching ₹8,560 crore this week