Riding high on RBI governor's assurance, bond market up for a long bull run

Experts say LTRO is the Indian version of quantitative easing, and that there should be more of it in coming days

Ten-year bond yields have fallen 16 basis points (bps) since the Union Budget on February 1. And short-term bond yields such as three-year ones have fallen 25 bps since the Reserve Bank in its monetary policy on February 6 introduced long-term repo operations (LTROs) to give banks one and three year money at 5.15 per cent, against the prevailing market rate of nearly 6 per cent. 

The bond market had earlier got a wind in its sail after the Budget showed there would be no additional borrowing. The bond yields fell nearly 10 bps in response. The southbound yields bore good