How did RBI pull bond yields below the crucial 6% mark?

Business


This week, RBI is also suspected to have bought sovereign bonds directly from the secondary market, known as ‘on-screen’ trades in market parlance.

Synopsis

The benchmark bond yield on Thursday dipped as much as 7 basis points to 5.94 per cent, pushing prices up.

MUMBAI: The benchmark bond yield dropped well below the crucial 6 per cent mark on Thursday, calming the debt market in a development that will help lower the federal funding costs at a time when New Delhi is seeking to borrow more.While the Reserve Bank of India (RBI) is suspected to have intervened in the secondary market, it also accepted additional bids in a special auction held on Thursday offering yields slightly higher than market

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