A week after the Reserve Bank of India (RBI) opted for status quo in its monetary policy, yields on 10-year benchmark bonds and Treasury Bills rose sharply Thursday as retail inflation spiked to 7.44 per cent in July, liquidity in the system tightened and pressure mounted on short-term interest rates.
India’s benchmark 10-year bonds rose to 7.25 per cent from the previous level of 7.20 per cent on August 14 and T-Bill yields rose by up to 13 basis points Thursday. Ten-year bond yields have gone up by 17 basis points in the last one month.
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