Indian benchmark yields saw minimal movement as the RBI’s ₹2.69 lakh crore dividend payout, though substantial, underwhelmed market expectations. Short-term yields are anticipated to decrease due to ample liquidity, potentially steepening the yield curve. An influx of over ₹70,000 crore in extra liquidity, coupled with the dividend transfer, is expected to further soften T-bill yields.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets