MUMBAI - India's benchmark 10-year bond yield dropped by 2 basis points to 7.39 percent on Tuesday, after Reuters reported that the central bank was likely to conduct at least one more forex swap auction and three to four open market bond purchases.
The benchmark 10-year bond yield fell to 7.39 percent, erasing the day's rise to be steady on the day. Yields had risen to 7.43 percent earlier in the session on the back of higher oil prices.
The Reserve Bank of India (RBI) will probably conduct at least one more swap of rupees for dollars after the general election, according to three officials with direct knowledge of the plan, part of an effort to support economic growth.
The Reserve Bank of India also plans to conduct more open market operations of up to 500 billion rupees over the next two months, an official said.