With yields rising sharply, banks are caught between a rock and a hard place. And as the quarter for the banks ends on Friday, the treasury departments are hoping the yields scale back so that their losses, even nominal, can be minimised.
The yields on 10-year bonds have risen about 96 basis points since August even after a rate cut by the Reserve Bank of India (RBI) in that month.
From the start of this quarter, the yield movement so far has been about 73 basis points. One basis point is a hundredth of a percentage point.
What makes the situation miserable for