Silicon Valley Bank collapse: Benchmark yield slips the most in five months

SVB collapse likely to force Fed to go slow on rate hikes, say analysts

Indian government bonds, particularly those of shorter maturity, strengthened sharply on Monday, as the collapse of the California-based Silicon Valley Bank (SVB) prompted investors to rush to the safety of American debt, leading to a decline in US bond yields.

A decline in US bond yields increases the appeal of higher-yielding fixed-income assets in emerging markets, such as India. Bond prices and yields move inversely. The most liquid Indian 10-year bond settled at a 7.36 per cent yield, against 7.43 per cent at close on Friday. Monday’s price action marked the sharpest single-day fall in the 10-year bond yield since