New Delhi, May 3 (KNN) The Reserve Bank of India (RBI), acting on behalf of the government, has issued a new 10-year paper with a coupon rate of 6.33 percent. 

This bond is expected to replace the existing benchmark bond in the coming weeks. The newly issued paper concluded trading at 6.32 percent on Friday and emerged as the second-most traded security, according to Clearing Corporation of India Limited (CCIL) data.

Meanwhile, the current benchmark 10-year bond yield remained nearly unchanged from its previous close, ending at 6.35 percent.

Bond yields saw a decline following the RBI’s announcement of a government securities buyback worth Rs 1.25 lakh crore in May. 

This move lifted market sentiment, with the large quantum of the buyback taking many market participants by surprise. However, dealers have cautioned that ongoing geopolitical tensions between India and Pakistan could potentially drive yields higher in the near future.

(KNN Bureau)