India's 10-year bond yield rose a further 6 points to a new three-year high of 7.18 percent. Yields had already risen 20 basis points on Friday post the RBI policy. It is a double whammy for the bond market as US yields have risen to 2.77 percent, which is also three years high. The hawkish tone of the policy has added to this movement.

Read Here | 10-year bond yield can move close to 7.50%; market pricing in series of rate hikes: Economists

The highlights of the policies were a revision of inflation from 4-4.50 percent to 5.7 percent. The introduction of the standing deposit facility (SDF) at 3.75 has meant that there was a jump from the lowest yield in the market at around 3.35.

Therefore. another way to look is that this is actually a 40 basis hike, though, on the face of it, it sounds like a no hike policy.

Watch the accompanying video of CNBC-TV18’s Latha Venkatesh for more details.

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(Edited by : Abhishek Jha)

First Published:Apr 11, 2022 2:12 PM IST