Bond yields expected to remain benign, may dip to 7% in the near term

The Reserve Bank of India, which conducted the auction, had set the cut-off yield at about 7.15%

The first Government of India bond auction for 2018-19 sailed through on Friday, and indications are investor appetite is likely to remain healthy.

Bond yields are expected to remain benign, and could slide close to 7 per cent in the near term.

Market players participated strongly. The reissuance of 10-year paper (7.17 per cent for G-secs maturing in 2028), amounting to Rs 30 billion, received bids of over Rs 120 billion. 

The Reserve Bank of India (RBI), which conducted the auction, had set the cut-off yield at about 7.15 per cent.

Lower market borrowings by the government in the first