Bond yields have moderated lately, with the benchmark 10-year Indian government bond dropping below 6 per cent, given concerns regarding Indias near-term growth trajectory and the RBI buying government securities under the new G-SAP (G-sec Acquisition Programme) programme. However, rising global inflationary pressures amid recovering global GDP growth have raised the probability of a possible withdrawal of ultra-loose monetary policy, which is likely to drive bond yields higher. Benign domestic…

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