Fighting Covid-19 pandemic, the RBI way

On May 5, WHO announced the end of the global health emergency triggered by Covid pandemic. How did the Reserve Bank fare during this period that changed the ways of the world?

Tamal Bandyopadhyay
bond yields

Illustration by Binay Sinha

Last Friday, the 10-year bond yield fell 3 basis points (bps) to end the day at 6.99 per cent – the first instance of the yield closing below 7 per cent since April 7, 2022. In the first week of May as well, the 10-year bond yield dropped below 7 per cent – to 6.98 per cent, before profit-booking kicked in, lifting it above that mark. On the same day, the cut-off yield of the 10-year bond auction was fixed at 7.038 per cent – its one-year low. One basis point is a hundredth of a percentage point.
There were many reasons behind the drop in the bond yield, including a fall in the US yield and softer crude prices.
Let’s take a close look at some of the key parameters that have been influencing the bond market since the onset of the Covid pandemic.
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Also Read

RBI MPC: Here is what experts have to say about the policy announcement

RBI hikes repo rate by 35 bps to 6.25%, cuts FY23 GDP forecast to 6.8%

RBI Monetary Policy: Repo rate up by 25 bps, FY23 inflation pegged at 6.5%

MPC lowers projection for inflation, raises growth outlook a bit in FY24

RBI MPC: When and where to watch policy announcement by Shaktikanta Das

Limits of Modi magic to perils of polarisation: 10 lessons from Karnataka

Democracy vs Pakistan

A change of heart

A green king in Buckingham Palace

May 13: The JD(S) steps into the future

First Published: May 14 2023 | 3:28 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to