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Trading in the Reserve Bank's dealing platform for government securities was halted for sometime this morning after the bond yields touched the upper circuit limit owing to sharp fall in the rupee.
Treasury officials said the benchmark 10-year bond yield rose by 10 basis points to touch 7.36%, in morning trade triggering the upper circuit.
"Trading was halted for sometime as the bond yield touched the upper circuit. However, after the halting period, trade was conducted normally," IDBI Bank treasury head N S Venkatesh told PTI here.
He also said the rise in yield was mainly due to the sharp reduction in the rupee, which touched an all time low of 59.98 against the US dollar in intra-day trade and closed at Rs 59.57, even after two reported interventions by the RBI.
On the yields on 10-year benchmark, Venkatesh said they would fall going ahead as the market stabilises after the knee-jerk reaction over Fed chairman's statement on withdrawal of stimulus programme.
Besides, he said inflows would also come into the country after today's over Rs 42,000 crore bond auction for FIIs. The auction attracted Rs 39,171 crore against over Rs 42,000 crore on offer.
