Indian Government Bond Yields Reach Three-Month High Amid Liquidity Deficit

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Dec 26, 2024

Indian government bond yields have surged to their highest levels in over three months. This increase is attributed primarily to a growing liquidity deficit in the banking system. The Reserve Bank of India recently sold 91-day treasury bills at a yield of 6.55%, and 182-day and 364-day bills at yields of 6.70% and 6.69%, respectively. These yields are the highest since September 11.

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