Fixed Income And Currency Market

16 Aug 2020

Bond Market is Testing RBI’s Resolve to Protect Bond Yields

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RBI devolved around 20% of the new 10 year bond, the 5.77% 2030 bond, on to the primary dealers, indicating its unwillingness to chase the tail. The market was spooked by inflation for July printing at close to 7% levels and cut off yield for the 5.77% 2030 bond in the auction was 5.96%, almost 20bps higher than the yield at which the bond was first auctioned in end July.

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Arjun Parthasarathy
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