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Final GSAP 1.0 Op In Focus

INDIA

Market participants will focus on the final operation under the RBI's GSAP 1.0 today, the Bank will purchase INR 400bn of debt from the market, including INR 100bn of state debt. Eligible sovereign issues: 6.97% 2026, 6.79% 2027, 7.17% 2028, 7.59% 2029, 5.85% 2030 and 6.64% 2035.

  • Markets will also pay attention to the RBI monthly bulletin that asserted the 10-year yield could fall further in the coming quarter. The bulletin notes evolving yield curve dynamics and scope for OMO's to shape the yield curve. They note the 5-year yield to be fairly valued and the 10-year yield converging to fair value in Q2. The bank's model indicates yields to adjust upwards by 1-23bps in the 2-3 years maturity, and decline by 39-56 bps in the 6-9 years segment.

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