Reserve Bank of India or RBI stated in a latest monthly update that domestic bond yields traded with a soft bias relative to the preceding month, on account of open market operations or OMO purchases, fall in crude oil prices, and moderation in CPI inflation. The yield on the 10-year G-sec benchmark declined to 6.29 per cent on May 19, 2025 from 6.41 per cent on April 15, 2025. The domestic yield curve has generally shifted downwards with relatively larger decrease in yields across the short and long end of the curve across the term structure. Between April 16 and May 19, 2025, the average term spread (10-year G-sec yield minus 91-day T-bills yield) increased by 18 bps over the period March 16 to April 15, 2025. The spread of 10-year Indian G-sec yield over 10-year US bond narrowed to 184 bps as on May 19, 2025 from 314 bps in mid-September and 267 bps a year ago. The spread which fell sharply during April 4 -11, 2025, due to heightened market volatility from uncertainty over the US tariff policy, subsequently stabilised, though it exhibited a gradual declining trend.
More News
|
|