RBI move to keep yields low shakes bond mkt, leaves participants perplexed

The Reserve Bank of India’s (RBI) market interest rate stance and signaling method is leaving the bond market perplexed.   It is making those who do not have enough capital to absorb losses nervous should yields start moving up in a year or two.    The central bank has devolved 10-year bond issues — worth about Rs 58,500 crore — for the fourth time in a row and also cancelled outright  (OMO) of Rs 10,000 crore.   Previously, it also rejected bids in special OMOs. The devolved amount is being picked up by primary dealers, the underwriters of the .....

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