Yields dip after strong demand for state debt

GOVERNMENT BOND YIELDS dropped on Tuesday, after better-than-expected demand for state debt supply and the central bank's purchase of longer-duration bonds.

- REUTERS

The benchmark 10-year yield was at 6.6714%, compared with its previous close of 6.6896%.

"We saw much better cut-offs in the state debt auction than estimated. So, both state debt supply and the RBI's OMO (Reserve Bank of India's open market) purchase are driving demand," a trader with a private bank said.