Bond yields climb to nine-month high on rate uncertainty

Indian bond yields climbed to a nine-month high as traders pared expectations of further interest-rate cuts and as concerns over potentially large supply of provincial debt in coming months hurt appetite.

- Bloomberg

The 10-year bond yield rose as much as eight basis points to 6.68% on Monday. The rise to the highest level since 18 March came despite a recent rate cut by the Reserve Bank of India. The sell off was exacerbated by thin trading volumes toward the year-end, traders said.