Why India's bond yields crashed after RBI pauses rate hike? 10-year treasury may hit 7.4% in near term5 min read 06 Apr 2023, 11:14 PM IST
The market was divided going into the policy with the swaps market pricing in a 50% probability of a pause. The yield curve has steepened marginally with the 5yr G-sec yield down by 10-11bps and the 10 yr yield down by 6-7 bps.
India's bond yields crashed on Thursday after RBI decided to pause in the repo rate hike cycle. Markets cheered RBI's latest policy outcomes and tapped equities. Going ahead, investors are likely to focus on RBI's liquidity management and global yield performance. The country's 10-year treasury is expected to hit at least a 7.4% level in the near term.
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