The central bank's bond buyback saw a lukewarm market reception, attracting significantly less than the offered amount despite a liquidity deficit in the banking system. Banks held back, anticipating future inflows and preferring short-term papers. Meanwhile, the benchmark 10-year government bond yield dipped to its lowest since March, buoyed by falling oil prices and record overseas portfolio investments.
The RBI's bond buyback received a lukewarm response, attracting bids well below the offered amount, despite a liquidity crunch in the banking system. Banks opted to hold back, expecting future inflows and favoring shorter-term papers. Simultaneously, the 10-year government bond…
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