Cause for concern: Biggest bond yield spike in Budget week since 2017

Since the finance minister's speech, yield on 10-yr paper has jumped 20 bps

This week turned out to be the worst budget week for the bond market in five years, with the yield on 10-year government securities moving up 20 basis points since Finance minister Nirmala Sitharaman’s speech on February 1. 

The yield on the 10-year government paper closed at 6.88 per cent on Friday, after hitting an intraday high of 6.95 per cent -- the highest level in two-and-a-half years. The yield cooled off by the end of the trading session after the weekly bond auction, in which the central bank rejected bids but did not devolve on primary dealers, the underwriters of