Bond yields continue to harden; rupee goes past 76 to a dollar

On Tuesday, the yield on the 10-year benchmark government bond advanced 5 basis points (bps) to close the day at 7.19 % - close to a three-year high

Bond yields continued their northward journey after the Reserve Bank of India (RBI) on April 8 said its focus would be on the withdrawal of the accommodative stance, while announcing the first bi-monthly policy review for the current fiscal year (2022-23, or FY23).

On Tuesday, the yield on the 10-year benchmark government bond advanced 5 basis points (bps) to close the day at 7.19 per cent — close to a three-year high.

Yields hardened ahead of the March Consumer Price Index (CPI) inflation numbers, expected to stay above the 6-per cent mark. The yield of the 10-year bond hardened by 28 bps