India's 10-year bond jumps highest in 3-months. Where is this treasury yield headed?

RBI INCREASES MONETARY RATES BY 50 BPS ON 6TH AUGUST 2022.....

• In August policy, RBI increased its policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.40% with immediate effect.

India's 10-year treasury yield clocked the highest single-session rise in three months after the Reserve Bank of India (RBI) hiked the repo rate by 50 basis points on Friday. This would be the third consecutive hike by RBI to tame inflation which is above its comfort zone for the sixth straight month. Other bonds have picked up as well. Markets welcomed RBI's rate hike move including a rise in bond yields. However, going forward, bond markets are likely to focus on incremental g-sec supply and take cues from global bond yields.

On Friday, the 10-year yield rose to 7.3% post the policy announcement against the previous day's level of 7.157%.

As per the Trading Economics website, India's 3-year yield rose to 6.90%, while the 2-year treasury yield climbed to 6.64%. The 5-year bond yields jumped to 7.03% on August 5.