RBI governor urges market to work together with the bank
India's central bank and markets need to work together to ensure the orderly evolution of the bond yield curve, the Reserve Bank of India governor told news channel CNBC-TV18 on Wednesday.
Bond yields have seen an upward bias since the government announced, in its budget this month, additional market borrowing for the current financial year and higher than expected borrowing for the fiscal year starting in April.
Investor appetite has been low despite the central bank's assurance that it would provide ample liquidity and ensure a smooth government borrowing programme as traders seek more direct support from the RBI.
"It entails a responsibility for the central bank and for the market players. So what we are looking at is an orderly evolution of the yield curve. I think I have given reasonable amount of clarity to the market," RBI Governor Shaktikanta Das said.
The benchmark 10-year bond yield was unchanged at 6.17% after the RBI chief's comments but is up 22 basis points since its low last week.This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.