Treasury Heads Eye Bond Purchases As 5-Year Yield Reaches 6.52 Percent
· Business · Economic Times, Wall Street Journal
Indian treasury heads are preparing to purchase government bonds after the 5-year yield rose to 6.52% in Mumbai. Yields climbed 15 to 17 basis points following the Reserve Bank of India's decision to prematurely close its FCNR(B) scheme by a month. South Indian Bank treasury head A N Vinod noted that buying could commence at these levels. However, CSB Bank treasury head Alok Singh stated that some investors are keeping funds on the sidelines while markets absorb the unexpectedly hawkish minutes from the Monetary Policy Committee.
Why it matters
The jump in government bond yields influences corporate borrowing costs and debt market liquidity across the Indian banking sector.
Read the original report — Economic Times
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