The 10-year G-Sec yield closes below 7 percent

Government Securities (G-Secs) There was a slight rally, with the benchmark 10-year yield closing below the crucial 7 percent mark on Friday, as expected Retail inflation would slide to the downside the Monetary Policy Committee’s upper tolerance level of 6 percent and the higher-than-expected cut-off price at the weekly G-Sec auction.

The yield on the 10-year benchmark (7.26 percent 2033 G-Sec) thawed about 3 basis points to close at 6.9938 percent (previous close: 7.0234 percent). The price of this security increased by about 21 paise to close at ₹101.84 (₹101.6325).

After hours, MoSPI said consumer price index (CPI) inflation fell sharply to 4.7 percent in April 2023.

As this key inflation indicator falls below The upper tolerance limit of the RBI of 6 percent for the first time in 14 months, market experts expect MPC will maintain the status quo with the policy repo set. This, in turn, can further boost the bond market.