India's bond yields rise despite RBI's 50 basis point rate cut, as markets focus on policy stance shift to neutral and liquidity injections.

• RBI's rate cut and CRR reduction failed to ease financial conditions; 10-year yields rose while short-term rates fell.
• $100B liquidity infusion kept treasury bill yields below repo rate, with interbank rates near the Standing Deposit Facility rate.
• Steep yield curve signals growth and inflation risks, as markets puzzle over RBI's abrupt policy stance change and core inflation concerns.