Indian bond yields drop ahead of RBI purchase

Indian government bond yields fell slightly on Monday, with the benchmark 10-year yield closing at 6.6896%, down from 6.6967%. Traders are awaiting a Reserve Bank of India bond purchase of 500 billion rupees scheduled for Tuesday. The RBI has already bought 1.89 trillion rupees in bonds since mid-January. Expectations of a rate cut in April are growing, following a drop in February retail inflation to 3.61%, below the anticipated 3.98%. Market analysts predict further declines in yields due to anticipated rate cuts and liquidity measures from the RBI. The 10-year yield is expected to remain between 6.65% and 6.75% in the coming months.