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Yield spread signals more surge in India bond rates, say analysts

The Indian bond market on Friday closed at a yield of 6.753 per cent, marginally up from Thursday's 6.746 per cent

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Illustration | Higher yield on 10-year GoI bonds would push interest rates and that will impact asset prices, including equities

Krishna Kant Mumbai
Investors should brace for a further rise in the yield on the benchmark 10-year Government of India (GoI) bond as the spread remains lower than the historical average. The yield on the 10-year GoI bond is currently 491 basis points higher than the yield on the 10-year US Treasury bond. It is also 40 basis points less than the average yield spread of 531 basis points since January 2010. 

The Indian bond market on Friday closed at a yield of 6.753 per cent, marginally up from Thursday's 6.746 per cent. The yield on the 10-year US government bond was around 1.84

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First Published: Jan 29 2022 | 6:05 AM IST

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