10 year G Sec yield dropped 25 bps in the last two days.
What has triggered this yield collapse.
MSM (Main Stream Media) is not given the importance to it.
Any reason for such a sharp move downward?
10Y Gsec is the playground of FIIs and Our Banks. Check out other tenures nearby. The sharp fluctuation not always due to any micro behind it. Sometimes our banks play out too.
Latest print of CPI has come at 2.99% and Repo Rate is 6.25% therefore the real interest is 3.26% which is really very high by any measure. During Raghuram Rajan time, it was stated policy that RBI wish to keep real interest rate between 1.25-1.75%.
Therefore RBI should actually do atleast 50bps cut and therefore yields are falling.