By IndiaHub 
The yield on the new benchmark 10-year bond ended at 6.2046%, compared with the previous close of 6.2107%. The 2034 bond yield ended at 6.2539% after settling at 6.2520% on Friday.
Yields on the 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. Investors await India’s economic growth data due on Friday. The economy likely grew 6.7% in January-March, up from 6.2% in the previous quarter, according to a Reuters poll. This would be followed by the central bank’s monetary policy decision on June 6, when a third consecutive rate cut is widely expected.
The RBI has cut the policy repo rate by 50 basis points since April and has infused around $100 billion in the last six months.
“Even though we see a liquidity deluge in the coming months, we do not see it impeding a June rate cut or depth of the easing cycle. We maintain terminal policy rate could reach 5.25%,” said Madhavi Arora, chief economist at Emkay Global Financial Services.
RATES The near-end overnight index swap (OIS) rate were largely unchanged, with the one-year OIS rate ending at 5.53%, while the two-year OIS rate was at 5.44%.
The most liquid five-year dipped slightly to 5.62%. ($1 = 85.0960 Indian rupees)