India 10Y Yield Nears One-Month Low
The yield on India’s 10-year G-Sec dropped below 6.5%, hitting its lowest level in nearly four weeks, as markets priced in expectations that the Reserve Bank will support the bond market through open market operations or by announcing an OMO calendar. The decline came as tighter banking system liquidity, driven by RBI’s foreign-exchange interventions to support the rupee, fueled expectations that the central bank would step in to buy bonds, highlighted by its 6,357 crore rupee purchase on Friday via the NDS-OM platform. Investors are also watching adjustments to the government and state borrowing calendars, which could ease supply pressure and help keep yields range-bound in the coming weeks. Meanwhile, in the latest trade update, US President Donald Trump said on Monday that Washington was nearing a trade deal with India, though markets remained subdued as traders looked for tangible developments in the talks.
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