10-year bond yield touches 8%, rupee falls to 71.18 against dollar

The bond market has started showing some fatigue on prospects of the rising supply of papers

The 10-year bond yields touched 8 per cent for the first time since December 2014, while the rupee hit a record low at 71.18 against the dollar even as the local equities fell sharply on Monday. 

The bond market has started showing some fatigue on prospects of the rising supply of paper. The second half borrowing, the calendar for which would come by the month end, is expected to be heavy from the Centre and states combined, and higher growth numbers also mean the central bank may find it encouraging to raise rates.

The rate hike could come as early