India's 10-Year Bond Yield Dips to 6.6714% Amid Strong Demand for State Debt

The benchmark 10-year Indian government bond yield ended at 6.6714%, down by 2 basis points from its previous close of 6.6896%. This decline follows strong demand for state debt, with states raising ₹526 billion through bond sales at yields lower than market estimates. The Reserve Bank of India's purchase of longer-duration bonds also supported market sentiment. Despite a liquidity deficit in the banking system, the yield drop reflects improved investor appetite for government securities. The RBI's bond purchases have injected significant liquidity into the market, helping to stabilize yields. As the financial year closes, market participants are closely watching the U.S. Federal Reserve's policy decision for further cues on global interest rates.

 

Source: Reuters, Economic Times