With both the Union Budget and Monetary Policy now behind us, there is a lot of uncertainty in bond markets where the benchmark 10-year g-sec yield has remained elevated, signalling negative sentiment and risk.
Some negative news is priced in already. Budget-day reaction saw the benchmark 10-year g-sec yield move up to levels of around 7.86% in intra-day trade. Bond prices fall when yields move up, signalling bad news or negative sentiment. The benchmark yield is currently about 7.50%.
