Bond yield rises to around 5-month high

Government bond yields rose on Friday amid fears of increased debt supply with the yield on the benchmark 10-year government bond settled at 6.55 per cent, up 2 bps from yesterday, highest since March 28.

- ANJALI KUMARI

Market participants said that the yield on the benchmark 10-year bond might rise up to 6.58—6.60 per cent during the next week.

"The overall sentiment in the bond market is down, the yield (on the benchmark 10-year government bond) might rise up to 6.58 per cent and then to 6.60 per cent," said a dealer at a primary dealership. "Mutual funds were on the selling side," he added.