From a low of 7.01 per cent on March 11, the benchmark 10-year government security (G-Sec) yield rose to 7.19 per cent on April 16. Investors who have bet on longer-duration debt funds hoping for mark-to-market (MTM) gains are anxious today.
Global developments have led to the rise in the 10-year G-Sec yield. “It has been led largely by geopolitical risks, which have affected crude prices and the currency. Another factor is strong US data, which has delayed US Federal Reserve (Fed) rate cut expectations and led to a rise in US treasury yields,” says Devang Shah, head-fixed income, Axis Mutual Fund.
