The yield on the Benchmark 10 -Year Bond was at 6.686% as of 9:45 AM IST, Compared with Its Previous Close of 6.2837% – The Highest Since May 13.
The Five-Year 6.75% 2029 bond yield was at 5.8589% after ending at 5.8842% on Monday.
“We We We We WERE Expecting Some Reversal from the 6.30% Level, but it seems like the market considers Current Levels to Be Decent to build fresh positions,” A trader with a trader with a primary dealership said.
Bond Yields Jumped on Friday and Monday as Markets Were Disappointed by the Central Bank’s Shift in Stance to “Neutral”, Signalling Limited Scope for Rate Cuts, After 50-Abasisis Point Reduction.
The reserve bank of India also slashed lenders’ Cash Reserve Ratio by 100 BPS, which is expected to add to the liquidity surplus.
The Central Bank has cut rates by 100 bps so far this year and is likely to pause this fiscal, according to a reuters poll of economists.
While Some Investors Believe That The RBI’s Rate Cut Cycle is Over, ANZ, MUFG and Nomura Expect at Least One More Reduction in 2025. Rates shorts short index swap (OIS) Rates Short Index SWAP But are expected to remain steady with a receiving bias.
The one-yar ois rate ended at 5.48% on Monday, while the two-yar ois rate closed at 5.47%. The most liquid five-yar was little changed at 5.69%. (Reporting by dharamraj dhutia; editing by sonia)
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