G-Sec auction lands on underwriters' books after 5 months; 10-yr yield up

The US Fed has hiked interest rates by a total of 450 basis points since March 2022

Government bond prices plunged with the yield on the 10-year benchmark paper increasing to a two-week high, as a large portion of a scheduled sovereign debt auction unexpectedly landed on the books of underwriters to signal weak demand, traders said Friday.

The yield on the most liquid 10-year paper rose 5 basis points to settle at 7.39 per cent on Friday, marking the highest closing yield for the bond since January 30. Friday’s move was the sharpest single-day rise in the 10-year bond yield since January 6.

Bond prices and yields move inversely. A rise of one basis point in