10-year benchmark government bond yield steady after RBI status quo

The market remained steady post MPC as the decision came along the expected lines.

The yield on India's benchmark 10-year government bond remained steady after the Reserve Bank of India (RBI) decided to maintain a status quo in repo rate.

The 10-year benchmark bond yield ended at 7.24 percent on December 7. The yield on the 10-year bond opened at 7.23 percent on December 8 and after the MPC announcement, the yield remained at 7.27 percent.

The market remained steady post MPC as the decision came along the expected lines.

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MPC decision

RBI on December 8 left its key interest rate unchanged for the fifth consecutive meeting, citing a potential resurgence in inflation and signalling that price stability remained its primary objective.

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The Reserve Bank of India's monetary policy committee (MPC), as expected, kept the repo rate, at which banks borrow short-term funds from the central bank, at 6.5 percent, as prices remain higher than the central bank’s medium-term target of 4 percent.

The MPC has kept the repo rate unchanged at 6.5 percent in the past four monetary policy reviews, after raising the rate by 250 basis points since May 2022.