Mumbai: Bond yields were largely steady on Wednesday afternoon on lack of fresh cues in a holiday-shortened week although cash conditions were abundant.
At 2:13pm, the 10-year benchmark bond yield was at 6.22%, off an early high of 6.27%, but still above its previous close of 6.21%. Financial markets will be closed on Thursday and Friday.
Dealers said most of the long term investors such as banks were not very active as most have already kept aside the mandatory statutory liquidity ratio requirement.
Also as yields have dropped sharply in recent weeks and thus, investors found current levels unattractive to buy bonds, they said.
Cash conditions in the banking system has been robust and banks parked Rs407.10 billion in the Reserve Bank of India’s morning reverse repo auction. They had parked a total of over Rs1.3 trillion in the reverse repo window on Tuesday.