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Operation Twist Makes India Long-Tenor Debt Asia’s Top Performer

  • 2029 yield down 15 bps while 2024 bond yield declines six bps
  • Success of Monday auction key to repeat twist operation: I-Sec
Updated on

Benchmark 10-year bonds rallied from near a three-month low after the central bank said it will buy 100 billion rupees ($1.4 billion) of longer-tenor bonds while selling shorter debt in a move reminiscent of the U.S. Federal Reserve’s Operation Twist.

The yield on the 2029 debt fell as much as 16 basis points to 6.59%, the most in more than two months, making it Asia’s top performer. The 7.57% 2033 yield also slid 20 basis points. Yields on the 6.35% 2020 bond -- a very short-end paper -- jumped 20 basis points.