Indian government bonds fell sharply on Monday as the central bank's measures to directly drain banking system liquidity, alongside foreign exchange operations that could indirectly reduce the surplus, weighed on demand.
The benchmark 6.94% 2036 bond yield rose to 7.3707%, highest in three years, by 10:20 a.m. IST from 7.2994% on Friday. The yield has risen for eight consecutive weeks, gaining 54 basis points during the period.
