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India Yields Hit Two-Year High as RBI Sells in Secondary Market

  • Underwriters rescue bond auction for first time since end-July
  • RBI sold a net 150 billion rupees of bonds since mid-November

India’s benchmark yield jumped to the highest in two years as demand for bonds at recent auctions dwindled amid concern over the central bank’s consistent sales of the nation’s debt in the secondary market.

The 10-year bond yield rose five basis points to 6.59%, highest since January 2020. That’s after underwriters stepped in to buy nearly 44 billion rupees ($593 million) of 60 billion rupees of the 2026 debt for sale on Friday. The last time underwriters rescued an auction was at end-July.