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Gilt yields jump up suddenly, to 5.75%

Deepak Shenoy1 min read
Quick Facts
What is "Gilt yields jump up suddenly, to 5.75%" about?
What category is this article in?
Charts And Analysis
Who wrote this article?
Deepak Shenoy, Capitalmind's research team.
When was this article published?
Published 7 January 2009.
How long does this article take to read?
1 min read

Gilt yields have gone berserk - up to 5.75% today. ET says its because the government is borrowing 50,000 cr..

But come on. 50,000 cr. is 1.25% of GDP. This is not a reason for bonds to lose nearly 4 rupees - or 3% - of their price. There has to be some other explanation, my idea being profit booking in general.

Let’s see - prices come first, reasons come later. I still see rates at 4% later this year, so I’m holding.