10-YEAR BOND YIELDS OPEN 4 BPS HIGHER AS INDIA-PAKISTAN TENSIONS FLARE UP

Domestic bond yields opened four basis points (bps) higher on May 9 amid uncertainty over rising tensions between India and Pakistan, after a six bps rise in yield seen a day ago.

The yield on 10-year benchmark 6.79 percent 2034 opened at 6.431 percent, as compared to 6.398 percent at previous close.

Bond prices and equity markets fell on May 8 after Cabinet Ministers said Operation Sindoor was still on, and that India will retaliate if Pakistan attempts any escalation of hostilities.

Bond yields across Asia have been tracking interest rate cuts by central banks in India, Indonesia, Thailand, South Korea and the Philippines since the start of the year.

Multiple cities near the western border, including Pathankot, Amritsar and Jaisalmer, have witnessed complete blackout on the night of May 8 after Pakistan resorted to munition and drone attacks targetting along the entire western border.

The Indian Army in a social media post on May 9 also shared an undated visual of a Pakistani military post being destroyed by an Indian retaliatory strike.

According to the Indian Army, drone attacks from Pakistan were effectively repulsed and befitting reply was given to the ceasefire violations (CFVs). "Indian Army remains committed to safeguarding the sovereignity and territorial integrity of the Nation. All nefarious designs will be responded with force," Additional Directorate General of Public Information for the Indian Army said.

The Border Security Force (BSF) too foiled a major infiltration attempt across the border in the Samba district of Jammu and Kashmir.

After Pakistan attempted to engage military targets in northern and western India, including sites in Rajasthan, Punjab and Gujarat, these border states on Thursday took precautionary measures, including increasing patrolling at the borders, preparing evacuation plans, and cancelling leaves of police personnel.

2025-05-09T04:23:37Z