Sovereign bond yields tumbled on Thursday after the Reserve Bank of India announced bond purchases of up to Rs 100 billion ($1.50 billion) to infuse liquidity into the banking system.

The RBI will conduct the bond purchases via open market operations (OMO) on 7 December, it said in a release after market hours on Wednesday.

On Friday, the RBI will also conduct 28-day variable term repo for Rs 250 billion to inject funds into the banking system.

At 9:08 a.m., the benchmark 10-year bond yield was down 5 basis points at 7.69%.