Bond Market Steady: India's 10-Year Yield Hovers at 6.5760% Amid Global Cues!

Yield Movement Analysis

The modest uptick reflects balanced trading in a range-bound session, influenced by RBI's recent liquidity measures and steady inflation data. Investors await fiscal updates and US Fed signals, keeping yields anchored near multi-month lows amid expectations of potential rate cuts.

Key Highlights

Current Yield: 6.5760% on IN064835G, a 2.2 basis point rise from 6.5738% close, indicating low volatility.

Trading Range: Session hovered between 6.57%-6.58%, with volumes moderate post-RBI repo operations.

Influencing Factors: RBI's ₹99 bn repo infusion and ₹7.69 tn bank balances support stability; govt surplus cash at ₹500 bn aids absorption.

Market Context: Foreign inflows of $2 bn in Dec bolster demand; outlook favors dips toward 6.50% if inflation eases further.

Investor Outlook

This resilience positions G-Secs as attractive for duration plays, with eyes on Dec 18 liquidity data and budget previews.

Sources: RBI Daily Treasury Statements, Bloomberg Bond Data, Economic Times market updates.