Gilt yields firm up ahead of credit policy review

Yields of government securities have been firming up ahead of the first quarterly review of the monetary policy by the Reserve Bank of India (RBI) on July 26.

A section of the market is anticipating another hike in interest rates.

The benchmark, 10-year yield has moved up by 57 basis points (bps) from 6.67% on April 1 to 7.24% on July 13.

Global central banks, including the US Federal Reserve, are on a liquidity tightening cycle since mid-2004.