The yield on the Benchmark 10-Year Bond is Expected to Move Between 6.26% and 6.29%, a trader at a private bank said, after closing at 6.2504% in the previous session. The Five-Year 6.75% 2029 bond ended at 5.9870%.
The RBI infuses liquidity through repo and withdraws it through reverse repo operations.
“Thought the move was expected, the timing has spoiled market mood, and shorter end should see a selloff, While Treasury Bill Yields Colds Cold see an adjustment of as Much as Much as MUCH POINTS,” The TRADER SAID.
The RBI will conduct a Seven-Day Variable Rate Reverse Repo Auction Worth One Trillion Rupees ($ 11.6 Billion) on June 27.
India’s Banking System Liquidity Surplus has alarged 2.76 trillion rupees per day in June, comfortable Above 1% of Bank Deposits.
Earlier this month, reuters had reported that the RBI Cold Start Conducting Variable Rate Reverse REPO Auctions to withdraw Surplus Liquidity as and when required.
Even as Shorter-Duration Bonds are set to face a larger impact of the move, long-duration notes may remin supported as oil prices styed lower and as us treesury yields extended losseses.
The 10-YAR us bond yield was at 4.30%, after hitting a Seven-Very Low on Tuesday, as a weaker than anticipated reading of consumer confidence bolsted houses of a Near-Term Rate Cut.
Brent Crude was beLow $ 70 per barrel after Iran and israel accepted a ceasefire. Rates India’s Shorter-Duration Overnight Index Swap Rates are expected to see paying pressure, while the long-enwalled remain steady.
The one-yar ois rate was at 5.49%, While The Two-Year Ois Rate was at 5.47%. The liquid five-year ended at 5.6725%. Key Indicators: ** Brent Crude Futures Rose 1.4% to $ 68.10 per barrel after Easing 6% in Previous Session ** Ten-YEAR US Treasury Yield at 4.3023%; Two-Year Yield at 3.7971% ** The RBI Will Auction Treasury Bills Worth 190 Billion Rupees ($ 1 = 85.9320 Indian Rupees)
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