{
  "id": 2269580,
  "title": "Treasury heads in buying mode as 5-year yield jumps",
  "url": "https://urgent.news/2026/08/21/treasury-heads-in-buying-mode-as-5-year-yield-jumps",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-21T01:10:16.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/bonds/treasury-heads-in-buying-mode-as-5-year-yield-jumps/articleshow/133390496.cms"
  },
  "original_language": "en",
  "account": "Mumbai: Treasury officials are in a buying mood as the 5-year government bond yield has soared to 6.50%. On Thursday, the 5-year g-sec yield closed at 6.52%. The yield on this bond surged 15-17 basis points to 6.52% after the Reserve Bank of India (RBI) abruptly ended its FCNR(B) scheme last week, shortening its duration by a month. As a result, the 5-year paper experienced a sharp reversal, dipping to 6.50% levels following the news of the early closure of FCNR(B). A N Vinod, head of treasury at South Indian Bank, stated that buying could commence from these levels.\n\nThe 5-year paper had experienced the most significant gains after the announcement of the FCNR(B) scheme, as inflows were primarily for three- to five-year tenures, with a substantial portion of the funds invested in the 5-year government bond. Before the FCNR(B) scheme was introduced in August, yields on the 5-year paper had plummeted to 6.31% from 6.85% levels in June.\n\nHowever, some analysts believe that buying may take some time to resume, as the RBI's unexpectedly hawkish minutes from the monetary policy committee have shaken markets and raised concerns that interest rates could rise in the near future. Alok Singh, head of treasury at CSB Bank, noted that markets will need some time to absorb the shock following the release of the minutes. Additionally, a significant amount of money remains on the sidelines, waiting to be deployed, which could happen within a week or two. Currently, the banking system liquidity is in a persistent surplus, standing at ₹3.70 lakh crore as of Wednesday, with an average daily surplus of ₹3.34 lakh crore this month.",
  "summary": "With government bond yields now at attractive levels, treasury heads are actively thinking about making purchases. After the RBI's FCNR(B) scheme ended, the five-year bond yield closed at 6.52%. Although there's speculation about a delay in renewed buying due to upcoming policy minutes, the banking sector's liquidity remains robust, with funds ready to be invested shortly.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Business Times - Companies & Markets",
        "title": "Bonds or equities? Pictet says 5% US 10-year Treasury yield could tip the scales",
        "url": "https://urgent.news/2026/08/21/bonds-or-equities-pictet-says-5-us-10-year-treasury-yield-could-tip",
        "published": "2026-08-21T01:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}