<ul data-eligibleForWebStory="false"><li>Yields of Government Securities (G-Secs) have been sticky despite ample liquidity in the banking system, attributed to RBI's change in monetary policy stance to 'neutral' signaling low possibility of further rate cuts.</li><li>The yield of the new 10-year benchmark G-Sec was last traded at 6.32%, while the yield of the old 10-year benchmark rose to 6.38% as the market reacts to the change in monetary policy stance.</li><li>Market experts believe that the RBI's jumbo rate cut in the policy repo rate, along with the change in stance, has reduced the scope for further rate cuts unless economic growth weakens materially.</li><li>The banking system is experiencing surplus liquidity, with daily liquidity averaging around ₹3 lakh crore over the last few months, and RBI has injected durable liquidity of ₹9.5 lakh crore since January to transition from deficit to surplus conditions.</li></ul>

G-Secs yields sticky despite ample liquidity in the banking system

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