Bond prices rallied the most in over 18 months following a drop in crude oil prices and US treasury yields amid apprehensions that the global economic growth would moderate because of rising Covid-19 cases in China and interest rate hikes in the US.
Yields — which are inversely related to prices — on the benchmark 10-year bond slumped to 7.04 per cent against the previous finish of 7.17 per cent.
Observers said if the trend in crude oil prices continued, the benchmark yield may even fall below the 7-per-cent mark, offering a reprieve to the government which is set to borrow a record amount in this financial year.
