New 10-year G-sec Paper yield closes at 7.88%
The yield on 10-year benchmark federal paper, 8.40% GS 2024, increased
by 01 basis point (bp) to close at 8.08% compared with 8.07% close in
the previous trading session and the new 10-year benchmark federal
paper, 7.72% GS 2025, yield also increased by 02 bps to end at 7.88%,
compared with 7.86% close in the previous trading session. The total
trading volume on central bank's gilts trading platform stood at Rs
28,515 crore.
Bond yields increased on concerns that a second year of below-average monsoon rains will raise inflation.
The weighted average rate in the overnight call money eased to 6.96%
compared with 7.09% in previous session. The call money rate hovered in
the range of 5.80% to 7.55% with the volume of Rs 9924.43 crore.