India's benchmark 10-year bond yield rose to its highest level since the pre-Lehman crisis on Monday afternoon as the rupee fell to a record low of 62.82 to the dollar despite several efforts from policymakers to arrest the slide.
The benchmark 10-year bond yield rose to 9.17 percent, its highest since August 21, 2008.
Traders said the level 9.1150 was significant as it was the highest level on the benchmark bond in the last round of monetary tightening between March 2010 and October 2011.
"A close above 9.12 percent on the benchmark bond will be a very bearish signal," a senior dealer with a foreign bank said.
"Technically next target on the 10-year bond is 9.48 percent," he added.