Despite efforts by the RBI to keep them down, India’s benchmark bond yields on Thursday yet again spiked above the psychological 7 per cent mark. Stock market traders are keenly watching bond yields to take any further call.
On Monday the RBI cancelled its open market operations (OMO) of selling bonds worth ₹10,000 crore after yields touched a 14-month high of 7.06 per cent last week post Moody’s upgrade of the country’s sovereign credit rating. The yields crashed to 6.88 per cent after the RBI move but the euphoria was short-lived. By Thursday, the bond yield rose 2.03 per cent in just three trading sessions to touch a high of 7.02 per cent.
