As a result of the first tranche of the Reserve Bank of India’s bond-buying program, the benchmark 10-year bond yield reached its highest level in a week on Thursday, while traders also weighed on inflation concerns.
The 10-year bond yield ended at 6.13%, its highest level since April 7 and 12 basis points higher than its previous close.
The Reserve Bank purchased bonds worth 250 250 billion under G-SAP or the government securities acquisition program, under which it committed to buy 1 1 trillion worth of government paper between April and June, to create a massive 12 12.06 of cents. To aid in the absorption of treasury debt. FY22.
“Traders were hoping that the RBI would buy 10-year paper,” said a senior trader at a private bank. The trader said, “It almost doubled the amount of that bond to only 75 billion.”
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