Inflation woes: 10-year bond yield near 7% ahead of RBI MPC meet

The yield on the 10-year government bond inched up to nearly 7 per cent ahead of the Reserve Bank of India’s (RBI) monetary policy review scheduled for Friday, as rising fuel prices may prompt the six-member committee to increase the inflation forecast for the current fiscal year.

The yield on the 10-year benchmark government bond closed at 6.92 per cent on Wednesday, up from the previous close of 6.90 per cent. The figure has gone up by almost 8 basis points in the past few days. According to the government’s borrowing calendar, it plans to borrow more in the first half