Question
What is the reason behind the rise in yield on the
10-year government bond in 2022?Solution
Surplus liquidity conditions that prevailed post-Covid-19 in response to the Reserve Bank’s conventional and unconventional monetary measures moderated during FY23 in consonance with the changed monetary policy stance that focused on the withdrawal of accommodation. The Reserve Bank remained nimble and agile in liquidity management by conducting two-way operations. It injected liquidity to assuage transient liquidity tightness through two variable rate repo (VRR) auctions of ₹50,000 crore each of 3 days and overnight maturity on 26th July and 22nd September 2022, respectively. The gradual withdrawal of surplus liquidity pushed the weighted average call rate (WACR) – the operating target of monetary policy – closer to the policy repo rate, on an average basis. After remaining steady through 2020 and 2021, the yield on the 10-year government bond rose in 2022. The weighted average yield spike reflects the domestic bond market volatility stemming from uncertainty in crude prices, a hawkish stance of major central banks, a hardening of global bond yield and the pressure on the rupee. The trading volume in G-Secs (including T-Bills and SDLs) reached a two-year high of ₹27.7 lakh crore during Q2 FY23, registering a YoY growth of 6.3 per cent. The higher trading volume reflects the growing interest of market players/ traders in the government security market. Private Sector Banks emerged as the dominant trading segment in the secondary market during the quarter under review, with a share of 25.0 per cent in “Buy” deals and 24.8 per cent in “Sell” deals in the total outright trading activity, followed by foreign banks, public sector banks, primary dealers and mutual fund.
__________________ aids synthesis of plant-growth substances and enzyme systems, and is essential for promoting certain metabolic reactions, its deficie...
The process evapotranspiration involves
Which of the following statements describe Kingdom Fungi?
Unit of inheritance located at a fixed position on a chromosome is
Pyrazosulfuron ethyl is a
The perfect stage is not seen in:
______ induces lateral cell expansion
Tillering habit is more common is cereals except
Heavy shedding of buds and bolls occurs in cotton due to:
Short term credit is usually for a period of ranging up to: