RBI's intervention drives down 10-year bond yields to 6% level

Apex bank buys nearly Rs 15,000 cr in just the 10-year bonds out of four securities scheduled in the OMO. It may have also intervened in the market

The Reserve Bank of India (RBI) on Wednesday in a way forced the bond market to accept its will by driving down the 10-year bond yields to the 6 per cent mark once again by giving a strong rate signal at the open market operations (OMO) auction.

Out of the Rs 20,000 crore the central bank wanted to buy from the market through four securities, the RBI bought Rs 14,654 crore in the 10-year segment alone. While completely leaving out a bond maturing in 2028, and buying Rs 2,040 crore and Rs 3,306 crore in the 2024 maturity and 2034