Money & Banking

G-Sec yields harden 3 basis points

Our Bureau. Mumbai | Updated on April 13, 2021

Government Security (G-Sec) yields hardened about 3 basis points on Thursday, in sync with the rising crude oil prices and US Treasury yields.

Yield on the 10-year benchmark G-Sec (5.85 per cent GS 2030) rose about 3 basis points to close at 6.1823 per cent over the previous close, with its price declining by about 25 paise to ₹97.58.

Bond market players say rising global crude oil price could have inflationary impact as India imports over 80 per cent of its crude oil requirement.

In his comments in the latest monetary policy committee meeting, Shaktikanta Das, Governor, Reserve Bank of India, underscored that CPI (retail) inflation, excluding food and fuel, remained elevated at 5.5 per cent in December, due to inflationary impact of rising crude oil prices and high indirect tax rates on petrol and diesel, and pick-up in inflation of key goods and services, particularly in transport and health categories.

Proactive supply-side measures, particularly in enabling a calibrated unwinding of high indirect taxes on petrol and diesel – in a co-ordinated manner by Centre and States – are critical to contain further build-up of cost-pressures in the economy, he added.

Published on February 25, 2021

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