Govt bond yields may rise after higher than expected July inflation print

Yields on government bonds are expected to rise on Thursday due to higher than expected headline inflation print in July, dealers said. However, losses might be limited as core inflation was the lowest in 39 months at 4.9 per cent in July.

Most experts believe that the yield on the benchmark 10-year bond might remain at 7.20-7.25 per cent on Thursday when the market resumes after a holiday, against 7.20 per cent on Monday.