FX.co ★ India 10Y Yield Slips to 1-Week Low

The yield on India's 10-year Government Security (G-Sec) fell to approximately 6.64%, marking a one-week low. This decline is attributed to investors anticipating ongoing support from the Reserve Bank of India in the secondary market, alongside the influence of softer US Treasury yields. Increased buying activity from insurers, pension funds, corporations, and the RBI has resulted in a net acquisition of INR 65.7 billion in bonds over the past two days, boosting investor participation. The RBI's weekly purchase report for the period ending January 16, due for release on Friday, is expected to offer additional insights. Traders have noted that despite a solid demand, the market still relies heavily on the central bank's support to maintain stability. Further RBI purchases worth 500 billion rupees were slated for the day, with projections of up to 2 trillion rupees in assistance over the forthcoming two months. The decline was further accentuated by decreasing US Treasury yields following President Trump's decision to retract tariff threats on Europe.