Fresh tussle between RBI, bond market expected ahead of 10-yr paper launch

The 10-year paper is no longer the most traded one - which is unusual

The tug of war over bond yields that started after the Union Budget, which announced Rs 12.05 trillion government borrowing plan, finally came to an end with the announcement of the bond buying programme, or the government securities acquisition programme (G-SAP) in April as yields of the 10-year benchmark went down below the psychological 6 per cent mark. Now another round of the bout is brewing ahead of the new 10-year paper, expected to be introduced in the market on Friday.

On Tuesday, bond yields rose across the curve - the yield on the 5.63 per cent bond maturing in 2026