RBI rate cut fails to enliven bond yields after $100-billion G-sec blues

The yield on the most-traded 2028 sovereign bonds fell just seven basis points, the rupee eked out a gain and the main stocks gauge closed flat after the 25 bps rate cut

So much for the Reserve Bank of India becoming the first major Asian central bank to cut its benchmark interest rate.

The yield on the most-traded 2028 sovereign bonds fell just seven basis points, the rupee eked out a gain and the main stocks gauge closed flat on Thursday -- hardly the reaction you’d expect when just 11 of 43 economists surveyed by Bloomberg News predicted the surprise decision.

Traders say the $100 billion bond sales unveiled last Friday by Prime Minister Narendra Modi’s government -- a decision that caused the yields on the most-traded sovereign bond to surge by the most