India Long Duration Bonds Rise on Bets of Dovish RBI Policy

Indian Government Bonds Rose in Early Deals on Thursday, LED by Longer-Duration Papers, AS Traders Added Positions A Day Before The Tentral Bank is widely expected to delivery a policy rain cut.

The yield on the Benchmark 10-Year bond was at 6.196% as of 10:00 am IST, Compared with the Previous Close of 6.2065%. The Five-Year 6.75% 2029 bond yield was at 5.8461% After ending at 5.8514%.

Bond Yields Move Inversive to Pries.

“Bond prices rally if there is something more apart from a rate cut, which is leading to some long build-up. Also Primary dealership says.

The reserve bank of India’s policy decision is due

MUmed Inflation Provides Ample Space to focus on boosting Economic Growth Further, Traders Said.

The RBI has lowered rates by 50 bps in 2025 and has infused $ 100 billion into the banking system in the December-May period.

While Most Expect A 25-BP Cut, The State Bank of India said the RBI Should Slash Rates by 50 BPS to Jumpstart The Credit Cycle.

DBS is expecting a 25-bp cut on Friday, Followed by another similar cut in july-decmber.

Some traders expert the RBI to Undertake more liquidity-boosting measures, which will further supports support-end bond prises.

There was not much activity in the overnight index swap (OIS) Market. The one-yar ois rate and two-yaar ois rate was not yet tried after ending at 5.54%, and 5.43% respectively.

However, the most liquid five-yaar ois was seen some receiving interest and was down to 5.62%, in the key technical support zone. (Reporting by dharamraj dhutia editing by eileen soreng)