G-Sec yields harden on retail inflation breaching the 6% mark
Benchmark 10-year yield rises 5 bps to 7.30%; markets expect RBI to hike repo rate by 25 bps to 5.75%
Government Securities (G-Secs) yields rose in Friday's trading due to retail inflation data for October 2026 exceeding 6 per cent, surpassing the Monetary Policy Committee's upper limit. The benchmark 10-year G-sec (6.94 per cent GS 2036) saw a 5 basis point increase, trading at 7.30 per cent compared to the previous close of 7.25 per cent.
As retail inflation rose beyond 6 per cent, market participants anticipate the RBI's rate-setting committee to raise the policy repo rate by 25 basis points, from 5.50 per cent to 5.75 per cent. The committee had previously increased the repo rate by 25 basis points on October 7, from 5.25 per cent to 5.50 per cent.
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