India’s 10-year bond yield hits 3-year high as RBI’s liquidity measure weighs on demand

Bond yields rose to a three-year high after the RBI announced liquidity-tightening measures, including raising the daily cash reserve requirement to 99 percent from 90 percent and a Rs 25,000 crore government bond sale. The rupee surged nearly 97 paise against the dollar, emerging as the strongest Asian currency, following four RBI measures aimed at curbing oil companies' dollar demand and speculative currency bets. Indian equities slipped, with Sensex falling over 574 points and Nifty declining nearly 150 points, as persistent FII selling and soaring bond yields outweighed the positive currency move.