RBI MPC: The yield in 10-year benchmark 7.18 percent 2033 bond was trading at 7.2890 percent on 10:50 AM, as against 7.2140 percent close on the previous trading session.
Soon after the announcement by the RBI, yield on the 10-year benchmark government bond started rising. In the morning trade it rose 7-8 basis points and later, in the afternoon trade, it rose by 15 bps.
Liquidity in the banking system started falling into the deficit zone after September 15 even after the incremental cash reserve ratio was reversed twice. The RBI is expected to take measures only if the deficit widens.
The Reserve Bank of India (RBI), in a release on September 8, said that 25 percent of the funds maintained in the I-CRR would be released on September 9 and 25 percent on September 23. The remaining 50 percent will be released October 7.
The 10-year benchmark 7.26 percent 2033 bond yield was trading at 7.0199 percent during afternoon trade, as compared to 7.09 percent close on the previous trading session.