10-Year Bond Yields Surge?

The 10-year yield on government security was put on Thursday as the Reserve Bank of India (RBI), for the second time, rejected bids as traders demanded higher yields at an alini 31,000 crore bond auction. The 10-year G-sec closed 10 key points above 6.13%.

The first auctioneers were required to purchase 5 21,592 crore government matures in 2025 and 2030. In the,000 26,000-crore temples last Friday, the RBI decided to transfer 73 6 736 crores of 6.22% of the government’s 2035 bond to first-time retailers.

The low-cost credit system imposed by the central government and concerns about a few payment measures is disrupting traders and disrupting debt auctions.

10-year bond yields surge

“Currently, the above rate is higher than in the fourth quarter. The supply flood has already been on the cards since April. All of this is happening at a time when the growth of bank loans is showing improvement and there is no expectation of a downgrade. The standard of measurement is back to normal and the RBI can control the volume,” according to Soumyajit Niyogi, who is the director of India Ratings.

The RBI also issued a new 40-year bond at 6.76% as part of Thursday’s auction. It raised ₹ 3,501 crores out of ₹ 7,000 million bonds sold.

These 40-year commitments were first introduced on 26 October 2015 and the institution raised ₹ 1 trillion. Another set was released on 6 May 2019 and ₹ 83,462 crores were upgraded. In 2020, two bonds were issued on April 30 and August 31. Bonds used to borrow ₹ 2 trillion in the market.

Last week, the RBI took a series of measures to keep the crop under control. It hosted a special G-sec auction, a separate open market operation (OMO) and Operation Twist to drive a yield of less than 6%.

Following the February monetary policy review, yields increased with the absence of the OMO calendar. The RBI had confirmed that the borrowing program would be completed without interruption, but traders expect the 10-year G-sec yield to hit 6.25% due to the usual overruns.


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