Now that the RBI has decisively signalled a turn in the interest rate stance, an upward shift in fixed income yields has started. The 10-year benchmark Government bond (G-Sec) yield moved up from 6.91 percent on Friday 8th April to 7.21 percent on 13th April at market close; up 4.35 percent in just three trading days.
Rising rates means that in the short term, debt investments bear the risk of fall in price; bond prices rise when yields fall and vice versa.
