The yield on the most-traded 6.45 per cent 2029 note dropped 10 basis points to 6 per cent, extending Wednesday's 7-basis point fall.
The excess borrowing will, however, ease the pressure on the RBI's liquidity operation as banks will absorb the excess G-Secs
One-year return for fund category is 17 per cent
The spread between the 10-year AAA-rated corporate and equivalent maturity government bonds have fallen to 108 bps
The development would attract higher foreign flows as many overseas funds are mandated to track global indices
The cut-off yield for 7.32 per cent-2024 was 6.408 per cent, while for 6.45 per cent-2029, it was 6.5780 per cent
The last such liquidity scene was witnessed just after demonetisation in end of 2016 and early 2017 when banks were parking their deposit-linked money with the central bank
Double-digit returns from these instruments boost tier-1 plans
The rupee started at 69.44 a dollar, and on December 27, closed at 71.32 a dollar.
Move signals lower bond yield at the long end
Existing limit for FPI investment in G-secs is 6% of the outstanding stocks of securities; govt may announce increase to 10% in Union Budget 2020
As per the statement, interest rate options are based on the underlying government 10-year bonds -- the 7.26% 2029 bond and the 6.45% 2029 bond
In the one-year period, gilt funds had outperformed most other debt categories with gains of over 10 per cent
Moderation in prices is crucial for the gems and jewellery business ahead of the festive season
With lower g-sec bond yields, banks may see Rs 10,500 crore MtM profits
A head of treasury with a public sector bank said bond yields might not see significant change from current levels
Heres why investors should remain predominantly in shorter-maturity funds
RBI said it will decide on the quantum of purchase of individual securities
The yield on the benchmark debt plunged 29 basis points, the biggest slide since November 2013, to 7.33 percent Tuesday
The yield on the benchmark 10-year government bond was trading little changed at 7.61 per cent, paring an earlier advance of two basis points