Addressing media at the launch of Bhartiya Mahila Bank, Chidambaram said "We hope that with some measures the RBI will take, and when the next set of inflation figures come, if food inflation moderates, it's possible that G-sec rates will go down."
Yields have risen sharply after RBI raised the repo rate for the second consecutive month in October. On Tuesday, November 19, 2013, yields were at 9 per cent level. The 7.16% 10-year bond's yield spiked nearly 175 basis points to 9 per cent in November from 7.25 per cent in June this year.
Rising bond yields have raised concerns that banks may raise the interest rates soon which, if happens, will be a huge blow to the investments.
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