10-yr yield logs steepest one-day rise in 2 mths amid index inclusion delay

Treasury officials also cited an increasingly uncertain global situation as a key factor that had dampened demand for bonds

Government bond yields registered their sharpest single-day rise in two months as major global index providers said that India’s debt had not yet been included on their platforms. Bond prices and yields move inversely.

A sharp rise in global crude oil prices also drove up bond yields and led to a weaker rupee as concerns over domestic inflation intensified.

Yield on the 10-year benchmark bond settled at 7.45 per cent on Thursday, 9 basis points higher than previous close. Thursday’s rise was the steepest in a day since August 5, when the Reserve Bank of India hiked interest rates. The rupee closed