Spike in bond yields profit-driven, says SBI Research report
The ongoing spurt in government bond yields, despite a recent rating upgrade by Moody's and growth revival, defies logic and is driven by profitbooking, says a report. The government bond yield has been on a roll of late and is hovering around seven per cent, which is around 30-35 basis points higher than in the first half of FY18. Despite government remaining committed to fiscal prudence and Moody's upgrading the sovereign ratings a fortnight back citing structural reforms and growth revival, the bond market surprisingly is still not rallying, noted an SBI Research report on Tuesday. "Even as the equity and currency market are basking in the glory following the rating upgrade, the bond yields are surprisingly witnessing significant upward movement, which can only be defined as irrational exuberance and profitbooking," the report said. PTI<