The Reserve Bank of India has been managing surplus liquidity in the banking system. The goal is to align the weighted average call rate with the repo rate of 6.50%. However, rates in the tri-party repo segment have been below the repo rate for four months. The Treps rate was 6.34% in October and 6.42% in September.
Bond supply may outweigh demand, push yields higher
Bond yields in India are anticipated to increase in the latter half of this fiscal year. This rise is primarily due to higher government borrowing