RBI steps up bond market intervention to stabilize yields.

RBI steps up bond market intervention to stabilize yields. The central bank purchased government securities this week, offsetting liquidity drained by foreign exchange market operations. The 10-year benchmark yield eased to 6.64% on Thursday, down from 6.72% on Wednesday, as the RBI's actions helped steady the market amid weakened sentiment from geopolitical tensions. Data shows purchases under the "others" category, which includes pension funds, insurers and central banks, surged to 17,254 crores on Thursday and 20,285 crore on Wednesday. Market experts believe the RBI's buying signals a yield level beyond which it feels uncomfortable, potentially capping further increases. The intervention demonstrates the central bank's commitment to ensuring smooth transmission of monetary policy while managing liquidity pressures in the bond market.