India bonds yields end lower in run-up to rbi policy decision

Mumbai, June 3 (Reuters) – Indian Government Bond Yields Declined on Tuesday, as traders added positions especially in the 10 -yar part of the yield curve, ahead of the center Later this week.

The yield on the new Benchmark 10-Year Bond Ended at 6.2022%, Compared with the Previous Close of 6.2144%. The Liquid Five-Year Bond Yield Ended at 5.8520%, Further Steeping The Yield Curve.

The reserve bank of India is widely expected to cut interest rates by 25 Basis points for the third cultural time on Friday.

The Central Bank has lowered policy rates by 50 Basis points in 2025 and has infused $ 100 billion into the banking system in the December-May Period.

The state bank of India believes that RBI Must Cut Rates by 50 BPS to Revive the Credit Cycle.

“The RBI’s Accommodative Stance is Likely to Continue, with a 25 Basis Point Rate Cut Anticipated at the June Policy Meeting and Expectations for the REPO RATE to Settle at 5.50% for the REMANENCIL Year, Further Supporting Growth and Investment, “Laukik Bagwe, Fund Manager and Head of Fixed Income at Iti Mutual Fund, Said.

India’s Economy surgged 7.4% in the January-to-March Period, Much Faster Than A Forecast of 6.7% in a reuters poll, and up from the 6.4% ex-Decumber.

Meanwhile, retail inflation for april slipped to 3.16% and is projection to stay below 4% for most for 2025. The market anticipates a reduction in inflection for the current year.

The overnight index swap (OIS) Rates Ended A Tad Lower, but have ben failing to break below the key support level since the last few sessions.

The one-year Ois rate was brought 2 Basis Points Lower at 5.55%, While The Two-Year and The Most Liquid Five-Eear Ois Rates WERE ALSO DOWN 2 Basis Points at 5.43%and 5.64%, Respightly. (Reporting by dharamraj dhutia editing by eileen soreng)