Bond yields fall 14 bps on less hawkish stance by monetary policy committee

Fall in global crude oil prices also leads to a sharp decline in bond yields

A combination of factors, including the less hawkish tone of monetary policy committee (MPC) members, fall in global crude oil prices and traders rushing to cover short positions led to a sharp fall in government bond yields.

This comes even as the broader sentiment of imminent rate hike still looms large to tackle the rise in prices.

The yield on the 10-year government bond ended the day at 7.04 per cent as compared to the previous close of 7.17 per cent. The rally in bond prices is the biggest since September 2020.

Yields shot up by 22-basis points (bps) after the monetary policy