10-year G-Sec yield closes below 7 per cent

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Government Securities (G-Secs) It rose slightly, as the yield on the benchmark 10-year note closed below the crucial level of 7 per cent on Friday, based on expectations Retail inflation will abate below Higher tolerance level 6 percent for MPC and higher than expected lot price in G-Sec Weekly Auction.

The return on the 10-year index (7.26 percent 2033 g-sec) melted about 3 basis points to close at 6.9938 percent (previous closing: 7.0234 percent). The price of this security increased by around 21 pesos to close at 101.84 Indian Rupees (INR 101.6325).

Hours after the market opened, the Ministry of Commerce and Industry announced that consumer price index (CPI) inflation in April 2023 had fallen sharply to 4.7 percent.

With this key measure of inflation falling below Upper tolerance limit for RBI 6 percent for the first time in 14 months, market experts expect The MPC will continue the status quo on the policy repo rate. This, in turn, could boost the bond market further.