However, RBIs assurance that it would maintain adequate liquidity triggered expectations of OMOs, which continued to provide some support on Friday.
The benchmark 10-year bond yield was down one basis point (bp) at 8.71% on the day, rising 13 bps on the week. Bullish cut-offs at the R14,000 crore ($2.2 billion) auction helped bonds to recover some losses. The cut-off yield on 8.28% 2027 bonds was 9.1852%, below a Reuters poll forecast of 9.2293%. In the overnight indexed swap market, the benchmark five-year rate closed 1 bp higher at 8.36% and the one-year rate ended 4 bps down at 8.72%.