Since the RBI’s April monetary policy, yields on papers rated AA and below have fallen 18-34 bps across maturities.
According to RBI data, the total number of registrations stood at 99,548 as on May 8, 2023, compared to 69,536 on October 10, 2022.
The yield on the benchmark 7.26 percent 2033 bond fell to 7.0338% on May 8 from 7.3056% on April 3.
The trading range for bond yields has been revised by traders after the RBI unexpectedly paused the rate hike, which helped yields to ease.
The yield on the 10-year benchmark bond eased to 7.3579 percent from 7.4321 percent in the previous trading session
Inflation is expected to cool as the effect of RBI’s rate increases since May, adding up to 190 basis points, begins to kick in. After the December monetary policy meeting, the bond yield direction will depend on central bank commentary .
The cut-off was slightly higher than what the market was expecting, according to dealers and market experts.
In the August policy meeting, scheduled for 4-6 August, the MPC is widely expected to keep the repo rate unchanged at four percent and maintain its accommodative stance.
Telecom major Bharti Airtel is likely to meet global investors early next week for its proposed billion-dollar bond sale, sources said. "The company will meet investors early next week, possibly on Monday, for a benchmark bond sale that is expected to raise USD 1 billion", sources said.
State Bank of India today said it will launch a marketing campaign for its benchmark bond issue next Monday in Hong Kong, Singapore and New York among global financial centres.