Bond yields dip 10 bps on falling crude prices amid global growth concerns

Government bond prices surged on Wednesday, with yield on the 10-year benchmark paper dropping 10 basis points (bps) as a slump in crude oil prices amid global growth concerns strengthened hopes of the Reserve Bank of India (RBI) adopting a less aggressive path for rate hikes.

Yield on the 10-year benchmark 6.54 per cent 2032 paper settled at 7.29 per cent, against 7.39 per cent on Tuesday.

Bond prices and yields move inversely. A fall of 1 bps in the yield on the 10-year paper corresponds to a rise in price of roughly 7 paise.

Brent crude oil futures fell