Indian bonds flat as sell-off stalls after pricing in RBI Liquidity Plan

Mumbai, June 26 (Reuters) – Indian Government Bonds Were Flat In Early Trading On Crading on Ceys, as Investors Took a Breather after news of the Central Bank’s Cash withdrawal Plan to TWEK LIKUDITY TRIQEAK LIKUDITY TRIC LIKUIK LIKUIK LIC Sell-off.

The yield on the Benchmark 10-Year Bond Yield was at 6.2839% as of 10:30 AM IST, Compared with the Previous Close of 6.2873%.

The Five-Year 6.75% 2029 bond was not tradeed; It closed at 6.0264% in the last session.

Bond Yields Move Inversive to Pries.

“The news on vrrr halted a bullish momentum – those who had built positions at the start of the week took a beating,” A trader with a primary dealership said. “We will now wait for Friday’s auction to take a view, and volumes may remain mutated Till then.”

New Delhi is set to sell bonds Worth 360 Billion Rupees ($ 4.19 Billion) on Friday.

The reserve bank of India will conduct a service-day variable rate Reverse Repo (VRR) Auction Worth 1 Trillion Rupees The Same Day to Tweak Banking System Liquidity Level.

The Liquidity Surplus Stood at 2.47 Trillion Rupees as on June 25. Reuters reported earlier that the rbi may use these rates as and when it requires, and that it sought markt to brring Closer to the repo rate by conducting the vrr auction. Trading volumes in the 6.33% 2035 bond are also expected to risk as the government plans to sell 300 billion rupees of the paper in Friday’s action.

India’s overnight index Swap Rates Inched Lower after a Sharp Rise The Previous Day. The rates should see some receiving pressure during the day amid growing antixation of a us rate cut, traders said.

The RBI Liquidity withdrawal Plan Pushed Up Trading Volumes in the Short-Eis Rates to a Two-Veeek High on Wednsday.

The one-yar ois rate was flat at 5.52%, while the two-yar ois rate was down 1 basis point at 5.49%. The Liquid Five-Year was down 1 Basis Point at 5.68%. ($ 1 = 85.8800 Indian Rupees) (Reporting by khushi malhotra; editing by Janane Venkatraman)