Bond yields rise to 3-year high on RBI liquidity cut
In a significant financial shift, India's government bond yields have hit a three-and-a-half-year high of 7.39%, primarily due to the central bank's strategy to minimize liquidity. Over the past month, the yield on the 10-year benchmark has surged by 38 basis points. The Reserve Bank of India plans a bond sale of ₹25,000 crore this Tuesday...
Key Takeaways
- In a significant financial shift, India's government bond yields have hit a three-and-a-half-year high of 7.39%, primarily due to the central bank's strategy to minimize liquidity.
- Over the past month, the yield on the 10-year benchmark has surged by 38 basis points.
- The Reserve Bank of India plans a bond sale of ₹25,000 crore this Tuesday while also raising the cash reserve ratio to 99%, effective from mid-October.
In a significant financial shift, India's government bond yields have hit a three-and-a-half-year high of 7.39%, primarily due to the central bank's strategy to minimize liquidity. Over the past month, the yield on the 10-year benchmark has surged by 38 basis points. The Reserve Bank of India plans a bond sale of ₹25,000 crore this Tuesday while also raising the cash reserve ratio to 99%, effective from mid-October.
Original Publisher Attribution
This summary was curated from Economic Times.