Bank mark to market losses loom as 10 year govt bond yields hit 12 month high

RBI bought bonds, but yields kept surging higher

Rising sovereign bond yields are likely to trigger mark to market losses for Indian banks in the March quarter. Even as the RBI conducted open market operation purchases, 10-year government bond yields climbed to a 12-month high, driven by geopolitical risks and persistent inflation worries, pressuring banks’ bond portfolios.