A milestone on bond street

India's entry into a global bond index is a great sentiment-booster, but much of it has already been factored in

The 10-year government paper auction on Friday (June 28) for Rs 20,000 crore received 267 bids worth Rs 47,776.500 crore. Its cut-off yield was fixed at 7.0191 per cent. In the secondary market, the 10-year paper yield was hovering around 7 per cent for the better part of the last week.

This auction coincided with India’s inclusion in the JPMorgan Government Bond Index-Emerging Markets (GBI-EM) global index suite. Along with the 10-year paper, there was a 40-year bond auction that received 209 bids worth Rs 25,570 crore, with a cut-off yield of 7.1004 per cent.

Overall, there was no