G-sec yields set to decline as weekly supply pressure eases

Government bond yields are expected to soften following the release of the borrowing calendar for the second half of the current financial year, after the Reserve Bank of India extended weekly issuances into March instead of closing them in February, reducing supply pressure, dealers said.

- ANJALI KUMARI

The central bank also trimmed the allocation of ultra-long 30to 50-year bonds by 5.5 per cent, increasing the share of shorter-tenure securities with threeand fiveyear maturities.

The yield on the benchmark 10-year government bond is expected to open below 6.50 per cent on Monday, compared with Friday's close of 6.52 per cent, according to dealers.