Debt market moves on from practice of aggressively-priced new 10-year bonds

New 10-year coupon at 7.26%; easing inflation offset by large bond supply

The response to the maiden auction of the new 10-year government bond shows that the Indian debt market may have moved on from a practice that existed for long – aggressive pricing of the security that serves as the benchmark for the rest of the sovereign bond yield curve.
 

The Reserve Bank of India on Friday conducted the first auction of a new 10-year bond maturing in 2033. The new 10-year paper shall soon take up the position of the most liquid paper in the secondary market and become the reference point for pricing sovereign bonds of other maturities.
 

Government