RBI repo cuts not effective any longer? They seem to have lost their sting

In 12 months, bond yields are down 100 bps, against 200-bps cut in repo

The rate cut by the Reserve Bank of India (RBI) seems to have lost its sting. The successive cuts in repo rate by the RBI have led to limited decline in the benchmark interest rate in the economy.

In the past 12 months, the RBI has cut is policy rate by 200 basis points (bps), from 6 per cent in June 2019 to 4 per cent.

However this has translated into 100-bps decline in yield on a 10-year government bond. The yield on a 10-year treasury is hovering around 6 per cent, against 7 per cent a year ago.