The benchmark 10-year bond yield elevated on Thursday to its highest level in a week as the outcome of the first tranche of the Reserve Bank of IndiaтАЩs bond-purchase programme disappointed traders while inflation concerns also weighed.
The 10-year bond yield ended at 6.13%, its highest level since April 7, and 12 basis points higher than its previous close.
The Reserve Bank purchased тВ╣250 billion worth of bonds under G-SAP or government securities acquisition programme, under which it has committed to buying тВ╣1 trillion worth government paper between April and June to aid the absorption of the CentreтАЩs massive тВ╣12.06 trillion borrowing in FY22.
тАЬTraders were hoping the RBI would buy more of the 10-year paper,тАЭ said a senior trader at a private bank. тАЬIt bought only тВ╣75 billion of that bond versus expectations of nearly double that amount,тАЭ the trader added.
