Govt bond yields decline on hopes of RBI's support through bond purchases

Government bond yields dropped as traders anticipated Reserve Bank of India support through open market purchases, with expectations of an OMO calendar announcement boosting sentiment

Government bond yields declined on Monday as market sentiment improved on expectations of the Reserve Bank of India’s support through bond purchases, dealers said. Market participants speculated that the central bank had bought bonds worth ₹6,357 crore on Friday via NDS-OM platform.

 

The yield on the benchmark 10-year government bond settled at 6.49 per cent, against the previous close of 6.51 per cent.

 

“The bond yields fell because the market was expecting that RBI will be there to buy bonds,” said a dealer at a primary dealership.

 

“The RBI was there in the previous week, and the market