 "10-year bond yields rise, may become tough for banks to pass on rate cuts")
The domestic 10-year bond yields spiked following cues from the US bond market, where yields rose to a month’s high and oil prices firmed up.
The domestic 10-year bond closed at 6.68 per cent, from its Monday’s close of 6.58 per cent. The market was closed on Tuesday due to a religious holiday.
“The rise is due to overseas yields firming up, otherwise there is no fresh domestic factor,” said a senior bond trader. There was a little bit concern about the finance minister talking about lowering goods and services tax (GST) on automobiles, which could potentially push up borrowing here
