Government bond yields surge as inflation surprise adds to woes

MUMBAI (Reuters) - India's benchmark 10-year government bond extended losses after July headline inflation came in above the RBI's comfort level, further complicating the Reserve Bank of India's efforts to prop up the rupee.

The benchmark 10-year bond yield rose as much as 8 basis points to 8.55 percent after the data. It had closed at 8.40 percent on Tuesday.

(Reporting by Subhadip Sircar; Editing by Anand Basu)