Gilts slump despite rate cut, RBI policy skips liquidity steps

Prices of government bonds ended sharply lower despite a 25-basis-point rate cut by the RBI's MPC as traders were disappointed by the lack of additional liquidity boosting measures by the central bank on Friday.

- Informist

Cut-off prices at the INR 220 billion auction were also poorer-than-expected as traders refrained from picking up large chunks of fresh stock on uncertainty around future rate cuts, dealers said.