The benchmark 7.26 per cent 2033 bond yield ended at 6.9823 per cent, after closing at 6.9824 per cent in the previous session. The yield, however, ended the week 3 basis points (bps) lower. The 10-year US yield was 21 bps lower for the week at 3.61 per cent.
Focus now shifts to the outcome of the Reserve Bank of India’s monetary policy due on June 8. It had surprised the market with a pause in the rate hike cycle in April.
All 64 economists in the poll conducted between May 16 and May 29 expected no change to the 6.50% repo rate.
Despite hitting an 18-month low of 4.70% in April, inflation is not expected to fall to the RBI’s 4% medium-term target for at least another two years, suggesting rate cuts are unlikely in the immediate future, according to the poll.
First Published: Jun 02 2023 | 11:15 PM IST