Corporate bonds have also benefited from flows into government debt as the former is largely priced off sovereign notes
The yield on the benchmark 10-year government bond fell by four basis points to settle at 7.05 per cent on Thursday, against 7.09 per cent on Wednesday
The market was driven by traders due to the absence of significant domestic cues, dealers said
New challenges can emerge in currency management
Investors have favoured longer-tenure government bonds, or g-secs, with insurance companies and pension funds leading the charge by stocking up on those with maturities of 30 years and more
Now that rate cut expectation in the US is getting postponed. The market's expectation for the Reserve Bank of India (RBI) to ease its liquidity stance is also experiencing delays
Last week, the RBI kept policy rates and stance unchanged, while reiterating its commitment to meet the medium-term 4% inflation target
RBI to conduct 14-day variable rate repo auction on Friday
The yield on the benchmark 10-year government bond touched the day's low of 7.02 per cent as the government announced lower-than-expected gross borrowing for financial year 2024-25 on Thursday
The benchmark 10-year yield ended at 7.1760%, following its previous close at 7.1835%. Indian markets are shut on Friday for a holiday
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The fall in US Treasury yields and foreign portfolio investor (FPI) inflows further aided rupee and bonds
With high starting yield and expectation of fall in bond yields, long term government bonds offer investor a rewarding opportunity, said experts
India's retail inflation likely picked up in November due to higher food prices after declining for three months, bringing it closer to the upper end of the RBI's 2%-6% target range, a poll found
The probability of a rate cut in March is above 66% and traders are near certain of a cut in May, which pushed the US 10-year yield to a three-month low. It was last around 4.25%
Goa and Haryana secured lower cut-offs at 7.65 per cent, whereas Arunachal Pradesh experienced a higher cut-off
A large corporate likely bought around 50 billion rupees of the benchmark paper through a private sector bank, traders said
The 10-year benchmark bond yield is expected to move in a range of 7.21%-7.26%, after ending the previous session at 7.2356%, a trader with a primary dealership said
The Reserve Bank of India set the cut-off yield on 91-day, 182-day, and 364-day T-bill at 6.92 per cent, 7.11 per cent, and 7.15 per cent respectively
The central bank had not given any timeline for OMO sales and said it will depend on the ongoing liquidity situation