Bond yields rose sharply and overnight call rates touched 7.15 per cent following the Reserve Bank of India's (RBI) decision to raise cash reserve ratio (CRR) on Friday.The decline in the 10-year bonds was the largest in single day witnessed in the last six months. The fluctuation witnessed was the wildest in any government debt market across the world today.Yield on the 10-year benchmark government bond reached the highest in more than three weeks to close at 7.53 per cent, up 11 basis points, which is the biggest one-day increase since June 19.The market which was already under strain owing to outflows towards advance taxes and government securities auction, slid further as sentiments turned bearish. Gilt prices fell by over Rs 1 across maturities. The fall was sharp in the short term papers of 1- 3 years maturity.Liquidity came under pressure and interbank call rates also shot up to a high of 7.15 per cent and most of the deals got transacted in the range of 6.85-7.0 per cent. The RBI absorbed around Rs 8,500 crore through the reverse repo window.
