India bonds declined on Wednesday, weighed down by the domestic central bank’s latest plans to further drain liquidity and a weakness in U.S. Treasuries.
The yield on the benchmark 10-year bond was at 6.3125% as of 10:30 a.m. IST, compared with Tuesday’s close of 6.3053%.
The five-year 6.75% 2029 bond yield was at 5.9704%, up from the previous close of 5.9569%.
India bonds dip on RBI liquidity move, weak US Treasuries
Indian bonds experienced a decline on Wednesday. This downturn was influenced by the Reserve Bank of India’s strategy to reduce liquidity. Weakness in U.S. Treasury bonds also contributed. The yield on the benchmark 10-year bond increased. The RBI plans a two-day variable rate reverse repo. Market awaits clarity on a potential U.S.-India trade deal.
Yields move inversely to bond prices.
The Reserve Bank of India (RBI) will conduct a two-day variable rate reverse repo worth 1 trillion rupees ($11.64 billion) on Wednesday,…
