MUMBAI, Feb 2 (Reuters) - Indian bonds recovered all intraday losses following a report that the central bank might conduct open market purchases to support the government’s borrowing programme.
The Reserve Bank of India might undertake open market operations to support the bond market and the budgeted bond buybacks are also likely to be completed by March, local news wire Newsrise said, citing an official.
The news pulled down the 10-year benchmark bond yield to 7.55 percent. The yield had risen to a high of 7.68 percent earlier in the day, the highest since February 2016 on worries that the RBI might come out with a hawkish policy next week.
The paper had ended at 7.6 percent on Thursday. (Reporting by Suvashree Dey Choudhury; Editing by Sunil Nair)