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Gilt yields end up in 2004-05 after 8 years

Yield on 10-year paper up by over 1.5%.  After a gap of eight years, yields on government securities are higher at the end of the fiscal year than they were at the beginning. As a result, commercial banks will be required to make mark-to-market provisions in their investment portfolios.  The yield on the benchmark 10-year government security "" a barometer for interest rate movement in the gilts market "" has risen by over one and a half percentage points during 2004-05 (from 5.12 per cent at the beginning of the year to around 6.65 per cent now).  In contrast, the yield ...