India's 10-year bond yields hit two-year high on hawkish RBI minutes

The minutes showed Reserve Bank of India (RBI) members acknowledging what the bond markets had predicted for long - interest rates had risen in the economy

Ten-year bond yields spiked 10 basis points (bps) after minutes of the February 5-6 meeting of the Monetary Policy Committee were revealed by its members on Wednesday. 

This came with the US Federal Reserve cautioning for more rate hikes in the world’s largest economy. 

The 10-year yield touched a two-year high of 7.816 per cent on Thursday, up from its previous close of 7.71 per cent, in intraday trade. It closed at 7.75 per cent on Thursday.

While US policymakers took comfort in rising inflation rate and increased economic growth, Indian policy makers were worried about the recent spike in food prices. 

“Bond yields