Bond yields soften, volumes jump after RBI signals more debt purchases

The benchmark yield slid to a new eight-month low of 7.42% as against previous day's close of 7.44

Bond yields fell to an 8-month low and volumes surged to the highest in more than a year, reflecting a revival of bullish spirits in a market emerging from a year-long sell-off, after the central bank signaled it may keep buying debt for four more months.

Turnover surged to Rs 883 billion ($12.4 billion) on Wednesday, the highest since June 2017, as the Reserve Bank of India added to the cheer by cutting its inflation projection at its policy review. 

The benchmark yield slid to a new eight-month low of 7.42 per cent as against previous day's close of 7.44.

“The yield may