Government Bond Yields Dip as States Plan Big Borrowing

On Tuesday, government bond yields took a little dip after a surprisingly good state bonds auction. The 10-year bond yield settled at 6.61 percent, down from 6.64 percent. States are gearing up to borrow Rs 4.99 trillion this quarter, which is more than last year. The RBI might step in if spreads get too wide, but it’s just a liquidity thing.