The yield on India’s 10-year G-Sec dropped to below 6.6%, retreating from a nine-month high, after the Reserve Bank of India rolled out a forceful set of liquidity measures. The central bank announced 2 trillion rupees of government bond purchases to be conducted in four tranches through December and January, alongside a $10 billion dollar–rupee buy/sell swap scheduled for next month, signaling a clear intent to ease tightening financial conditions. The benchmark yield slid as much as 8 basis points, its biggest daily drop in four months, reversing pressure seen earlier this week when yields surged on supply worries and tight cash conditions. The planned infusion, which is double the liquidity support announced earlier in the month, is expected to offset drains from tax outflows and the RBI’s dollar sales, as banking-system liquidity recently slipped into deficit. With borrowing costs easing, market participants now see scope for the 10-year yield to drift toward the 6.50% area.