India benchmark bond posts worst day in six months on RBI measures

India's benchmark 10-year government bond yield surged nearly 9 basis points to 7.3857%, a three-year high, as RBI announced 250 billion rupee bond sales and tightened banks' cash reserve ratio maintenance. September consumer inflation accelerated to 5.54%, above the 5.40% estimate, reinforcing expectations of a 75-100 basis point rate hike cycle. OIS rates steepened sharply with the one-year rate climbing 11.75 bps to 6.36%, signalling tighter liquidity conditions ahead.