10-Year Gilt Yield Drops Below 6%

The yield on the benchmark 10-year government paper (7.4 per cent 2012) pierced the 6 per cent level today to close at 5.98 per cent on heavy trading.

With this, the yield on the 10-year paper has dropped over 130 basis points (1 basis point is one hundredth of 1 percentage point) since the beginning of the current financial year. In 2001-02, the yield had dropped by 300 basis points.

In a related development, the yield on the 20-year paper (8.35 per cent 2022) today came close to the Reserve Bank of India