Bond traders in India on edge again amid conflicting signals from RBI

The RBI also said it would inject one trillion rupees via 56-day repo operations while offering to take back longer duration one- and three-year cash

India’s sovereign bond market is on tenterhooks again.

Just days after announcing measures to lower yields, the central bank has given signals that traders interpret as a lack of interest from authorities in pushing rates down further.

The yield on the 5-year bond has climbed 29 basis points so far in the three trading sessions to Tuesday while the rate on 10-year bonds is up 16 basis points, retracing much of the earlier fall. The quick turn in sentiment shows a tug-of-war between the hopes of the bond market and the central bank’s approach to absorbing a record supply of debt from