Mumbai: India’s 10-year benchmark bond yield fell 13 basis points on Friday morning after the central bank announced a 100 basis points cut in the reserve requirements for banks from Saturday.
At 10:15am, the 10-year benchmark bond yield was at 7.69%, 13 basis points lower from 7.82%just before the announcement. It had closed at 7.98 percent on Wednesday. Markets were closed on Thursday for a religious holiday.
Reserve Bank of India said on Friday it would cut banks’ cash reserve requirement to 7.5% of the deposits held by them from Saturday.
The move will release a total of about $12.2 billion into the banking system.