India bond yields rising slower than most economies, but not for long

Analysts expect bond yields to go up faster in the new financial year amid inflationary pressure

Interest rates and the benchmark bond yields are now rising in most economies across the world but the increase has been relatively muted in India than developed markets, such as the United States. The yield on the benchmark 10-year Government of India bond is up around 37 basis points year-to-date to 6.83 per cent (as on Wednesday), from 6.45 per cent at the end of December 2021.
 

In the same period, the benchmark bond yields in the United States are up 87 basis points. The gap widened further in March. Bond yields in the US are up 56 points since