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Bond Yields Plummet Like Crazy After State Auction Triumph

Bond Yields Plummet Like Crazy After State Auction Triumph

Listen up, folks! Government bond yields are taking a nosedive—just like I predicted! After a state auction that was tremendous, yields are looking fantastic! The 10-year bond? A dazzling 6.61 percent! States are borrowing nearly 5 trillion—huge numbers! This is a game-changer, believe me! Nobody does bonds better than us!

Quick rundown

  1. Government bond yields fell after a successful state bonds auction.
  2. Long-term bond cut-offs exceeded expectations, easing market concerns.
  3. RBI may include SDLs in OMO purchases if yield spreads widen.
  4. RBI's upcoming OMO auction worth Rs 50,000 crore is well-received.
  5. Net liquidity in the banking system shows a surplus of Rs 64,812 crore.

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