Short-term yields drop as forward premiums soften

MUMBAI: Short-term yields have dropped by up to a tenth of a percentage point in June after the Reserve Bank of India (RBI) successfully brought down forward premiums via currency derivative deals. Banks are increasing bets on these securities in anticipation that a rate increase, if any, will be a reality only in FY2023. Softening yields will likely help North Block, which is seeking to borrow an additional Rs 1.58 lakh crore in FY22 to bridge