|Chennai||Rs. 25020.00 (0.81%)|
|Mumbai||Rs. 25890.00 (0.98%)|
|Delhi||Rs. 25200.00 (-0.2%)|
|Kolkata||Rs. 25480.00 (1.03%)|
|Kerala||Rs. 24800.00 (0.61%)|
|Bangalore||Rs. 25000.00 (0.81%)|
|Hyderabad||Rs. 25080.00 (1.09%)|
Bond yields are set to rise further and the rupee could touch a new all-time low this week. The month-end dollar demand from importers is expected to keep the rupee under pressure and tracking of the weakening rupee, government bond yields will rise. The yield on the 10-year government bond rose by 40 basis points on Friday against Wednesday's closing figure of 8.50 per cent.
The rupee touched 62 against the dollar during intra-day trading and ended at an all-time closing low of 61.71 compared with the previous close of 61.44. Banks are set to take a hit on their treasury portfolio in this quarter as the yield on the 10-year government bond rose by 146 basis points since the start of this quarter. The yield was at 7.44 per cent on June 30. "Banks are in a position where they can neither cut their losses nor go for fresh purchases of government bonds," said Anoop Verma, vice-president (treasury), Development Credit Bank. According him, the yield on the 7.16 per cent 2023 government bond might touch nine per cent this week.