Bond yield surges to 3.5 year high

Mumbai: The benchmark bond yield surged to nearly three-and-a-half year high mirroring spikes in the US Treasury yields. The local gauge closed at 7.60%, the highest since January 7, 2019. Indian bonds are mirroring US Treasury yields amid inflation worries, said Naveen Singh, head of trading at ICICI Securities PD. "The benchmark gauge may correct a bit as the local inflation gauge did not spring any ugly surprises in May," he said. The US Treasury benchmark surged 31 basis points this month to yield 3.26%. Back home, the Consumer Price Index rose 7% in May.