The five -year bond performance of India fell below 6 percent for the first time since 2022 amid wide license and expectations of more short -term interest rate cuts.
The yield fell four basic points to 5,997 percent, while the 10 -year reference yield was reduced by two basic points, reinforcing the current trend characterized by shorter yields that fell more than the longest.
“In a reinforced rate cutting cycle with surplus liquidity, the curve always approaches, and now, the market awaits deeper tariffs or 50-100 basic points,” said Punet Pal, head of fixed income at PGIM ASSET MANAGEMENT LTD.
The aggressive cash injections of the Bank of the India Reserve and two target cuts have caused a sovereign bond rally, promoting the 10 -year yield in approximately 45 basic points this year.
The acute drop is reflected in short end assets. The Government sold a 91 -day Treasury bill on Wednesday at 5,8792 percent, the lowest level since 2022. In the Corporate Front, the average yield in the notes of the upper three years fell to 6.92 percent this week, a three years.
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Posted on May 8, 2025