The yield on the benchmark 7.37 per cent 10-year paper (2014) closed at a six-week high of 6.38 per cent today against 6.24 per cent yesterday. Its highest close was 6.65 per cent, recorded on August 11. | |
| The prices of government bonds in the longer term of the maturity fell by almost Re 1 and short- and medium-term paper dipped by almost 70 paise. |
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| A bearish outlook on the interest rate scenario, with inflation still ruling high, is said to be the trigger for today's fall in bond prices. |
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| "Inflation at 7.8 per cent, lack of a clear view on interest rates, and no major buying pressure from the banks made yields go up across maturities," said a dealer. |
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