2018: Bond yields to stay elevated; rupee stable

Currency dealers expect the rupee to remain in the 64-66 a dollar range for most part of 2018

The yield on 10-year government bond rose to a 21-month high of 7.40 per cent on Thursday before closing the year at 7.32 per cent. Bond dealers say, by the time of Budget announcement, they could march up to 7.80 per cent levels. That would be a sharp rise, considering that in early August yields were below 6.50 per cent. What’s ironic is that yields have been rising even after a rate cut in August as the market doesn’t see any scope of rates softening on the face of hardening inflation.
 
The new year would be interesting for bond