Stability in G-Secs has added to financial market resilience, says FM Sitharaman

further said the measures taken for monetary tightening has stabilized the G-Sec yields.

The stability in government securities yields has contributed to overall financial market resilience and investors confidence in the Indian economy, Finance Minister Nirmala Sitharaman said  on April 1.

The measures taken for monetary tightening stabilised the G-Sec yields, the minister said.

"Inflation management despite monetary tightening measures and the measures taken for monetary tightening have stabilised G-Sec yields, which is very important for the economy," Sitharaman said during an event commemorating 90th year of the Reserve Bank of India (RBI). "The stability in G-Sec market has contributed to overall financial market resilience and investors confidence in the Indian economy."

In the last few months, the yield on the government securities have stabilised due to strong demand from long term investors. The 10-year benchmark bond which was last year trading around 7.30 percent levels, has now came down to 7.05-7.08 percent levels.

On the rupee front, Sitharaman said it has exhibited a lower volatility and orderly movement is what we noticed in rupee and they are in relative terms to the rest of its peers.

The Indian rupee ended flat at 83.40 against the US dollar in the week ended March 28 against its March 22 closing 83.42.