RBI spurns investors asking for higher yields

Bond dealers say until uncertainty regarding the fiscal plan goes, yields will be under pressure

Of the bonds worth Rs 15,000 crore on offer to investors, the Reserve Bank of India (RBI) on Friday did not sell Rs 4,755.5 crore of those because of apprehensions on their part. 

Investors are asking for higher yields because they fear fiscal conditions might deteriorate and more bonds might come in.

Of the bonds worth Rs 4,755.5 crore, the RBI did not sell Rs 3,840 crore of those maturing in 2031 and Rs 915.50 crore of the ones maturing in 2022. 

Bond dealers say the market is apprehensive of talks about fiscal expansion and sees scope for more papers coming in. 

Already, state