The benchmark 10-year sovereign yield fell 15 basis points last year, the most in three years. It’s expected to slide by more than 30 basis points by the end of 2024 from 7.22% on Thursday, according to the median estimate in a Bloomberg survey.
India s banking system liquidity deficit widened to the highest level in nearly eight years this week. Wednesday s repo, through which the RBI lends funds to banks, saw bids worth 1.58 trillion rupees.
"Shortage of funds will only get exaggerated in the last quarter (of the fiscal year), which ideally also sees the strongest credit growth," a senior treasury official at a private bank said. "We expect frequency of such repos to increase."
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