Samvat 2079: Bond yields soften, rupee stable despite falling to fresh lows

Domestic bond yields were relatively less volatile compared to the US treasury bond yields, as the market was driven by investors rather than traders

The yield on the benchmark 10-year government bond fell by 21 basis points (bps), whereas the rupee depreciated by 0.79 per cent in the Samvat ending November 12. The new Samvat will begin from Monday.  

Government bond yields remained largely stable with a significant demand from insurance companies and state-owned banks throughout the year, said market participants. 

The yield on the benchmark 10-year government bond traded in a broad range of 6.96-7.51 per cent during the period.

The yields slumped in May on the expectation of rate cuts by the Reserve Bank of India’s (RBI’s) Monetary Policy Committee.

The domestic