10-year bond yield opens flat ahead of RBI’s monetary policy decision

Bonds

Indian 10-year benchmark bond yield opened flat ahead of Reserve Bank of India’s (RBI) monetary policy decision on October 1, at 6.569 percent as compared to 6.577 percent at previous close.

The RBI MPC is likely to maintain a status quo on rates, as per a Moneycontrol poll of 15 economists, bank treasury heads and fund managers has found. The rate-setting panel may draw comfort from a higher growth rate in the first quarter, while it assesses the impact of Goods and Services Tax (GST) reforms, according to experts on the economy.

A few economists, however, expect the central bank to cut the key repo rate by 25 bps during the review, owing to a drop in CPI inflation. Since February, the MPC has reduced the repo rate by 100 bps to aid growth, with a 25 bps cut in February and April and 50 bps in June.

This is to be updated