Benchmark bond yield at 7% after 14 months

G-Secs weakened due to heavy selling pressure from banks and corporates

The yield on the 10-year government security (G-Sec) closed over seven per cent on Tuesday, given concerns regarding rising inflation, geopolitical instability, rising oil prices, fiscal policy issues and depreciation of the rupee. The previous time the 10-year bond closed above seven per cent was on September 8, 2016. 

The 6.79 per cent G-Sec maturing in 2027 opened at 6.98 per cent. It rose to 7.05 per cent at close from 6.97 per cent on Monday, according to data from the Clearing Corporation of India Ltd. (CCIL). The yield for the 10-year bond has risen considerably over the past one month