By IndiaHub 
The yield on the new benchmark 10-year bond was at 6.2124% as of 10:00 a.m. IST, compared with the previous close of 6.2107%. The 2034 bond yield was at 6.2553% after settling at 6.2520% on Friday.
Yields on these bonds rose to 6.2270% and 6.2812%, respectively, in opening deals.
Bond yields move inversely to prices.
The Reserve Bank of India‘s board approved the transfer of 2.69 trillion rupees ($31.6 billion) as surplus to the federal government for the fiscal year ended March, up from 2.11 trillion rupees in the previous year, it said on Friday.
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Market participants had expected the amount to cross 3 trillion rupees. “The figure is lower than what market had wanted, but will not change the medium-term market view, which is guided by the central bank’s liquidity injection and rate cuts of at least 50 basis points more in the coming months,” a trader with a state-run bank said. Investors await India’s GDP data on Friday, followed by the central bank’s policy decision on June 6, where a third consecutive rate cut is widely expected.
India’s economy likely grew 6.7% in January-March, up from 6.2% in the previous quarter, according to a Reuters poll.
RATES The overnight index swap (OIS) rates could continue to see some receiving interest on expectation of lower interest rates.
The one-year OIS rate was at 5.55%, while the two-year OIS rate was not yet traded.
The most liquid five-year dipped 2 basis points to 5.65% after rising 4 bps on Friday. ($1 = 85.0350 Indian rupees)