The governmentbond yields rose to 10-month highs on Monday as dealers cut positions ahead of larger-than-expected bond auctions this week. The yield on the 10-year bond ended at 8.23%, up from Friday’s close of 8.14%. It hit 8.24% in early trades, a level it last tested in early August. “The bond auction news saw the sell-off in the morning,” said a local trader.
After the market closed on Friday, the government said it would auction Rs 22,000 crore of bonds and bills this week. These sales, traders said, are aimed at draining excess cash from the banking system.

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Posted: 06|12|07 at 8:06 am. Filed under: News.