10-year benchmark sovereign bond yield falls 9 bps

Mumbai: Yields on the 10-year benchmark sovereign bonds eased 9 basis points Monday in the first such retreat in more than a fortnight amid expectations of a possible end to the West Asia war after reports emerged the US and Iran are working on a de-escalation framework. Yields consistently climbed through March amid high oil prices and a rupee rout, reports Our Bureau.

Yields closed at 7.04% on Monday, easing from 7.13% on Thursday. Yields opened higher at 7.13% on Monday but retreated during the day, CCIL data showed.

Bond yields eased for the first time after advancing for the previous 12 sessions. This is the largest single day fall in nearly 15 weeks, according to LSEG data.
The market also drew support from a lower-than-expected state borrowing calendar. States said they would raise about ₹2.54 lakh crores via bonds in April-June quarter, below market expectations of ₹3 lakh crore.

Bond traders are now looking at the central bank’s decision on policy rates to be announced on April 8.