Bond yields at 21-month high

  • HT Correspondent, Hindustan Times, Mumbai
  • |
  • Updated: Aug 16, 2013 21:35 IST

With the rupee hitting a record low of 62.03 against the US dollar on Friday, Indian benchmark government bonds yield rose to a 21-month high of 8.90% and closed the day 0.38 percentage points higher to 8.88%. It was the biggest single-day rise since July 16, the day after the RBI took its first cash-tightening steps.

Rise in bond yields reflects that interest rates in India are expected to move higher. Total volumes traded in the bond market continue to remain thin at Rs 9,925 crore.

Bonds fell more after the RBI set higher-than-expected yield cutoffs at the weekly government bond auction and devolved part of the auction.

 

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