Govt's recapitalisation plan: Yield hardens on benchmark govt bond in early trade

Treasury dealers said it is a knee-jerk negative reaction as the market is looking for clarity on how Rs 76,000 crore will be raised for recapitalization size out of Rs 2,10,000 crore plan.

The yield on the government's 10-year paper, benchmark paper, hardened by three basis points in opening trades, seeking further clarity on the recapitalisation plan.

The bond yield on the 10-year paper was ruling at 6.80-81 per cent range, according to data from Clearing Corporation of India.  

On Tuesday, the yield on benchmark 10-year bonds had eased to 6.78 per cent on Tuesday as against a close of 6.80 per cent on Monday, according to ICICI Bank report.

Gilts had traded in a thin band as traders avoided big bets, ahead of a big announcement by Finance Ministry.

Treasury dealers said