India 10 year bond yield rises after new 14-yr bond sale announced

MUMBAI: India's benchmark 10-year bond yield rose further in afternoon trade, as traders pruned bond holdings after the government announced the sale of a new 14-year bond as part of its weekly bond auction announcement.

Traders were also caught by surprise by the timing of the finance ministry's release, as typically the central bank announces bond auction details after market hours.

Immediately after the announcement, the 10-year bond yield rose 3 basis points to 8.69 percent, taking it up 5 basis points on the day.

Bond yields have been rising due to profit-taking after the 10-year bond prices hit a 4-month high on Friday.