India's 10-year bonds continued to post profit for third consecutive week. And this time the reason was the rising concern the central bank, the RBI will be adding to this year's four interest rate hikes.

The move, though, taken for controlling the inflation has had a great impact on the way the investors are now looking at the bond markets.

Duvvuri Subbarao is now expected to tighten the interest rates even more as there is excessive consumer demand which is further adding to inflation, it was said by the Finance Minister Pranab Mukherjee.

Meanwhile, the government is planning to raise Rs. 13,000 crore by selling bonds with the maturity at 2017. Some will have maturity at 2022 and others at 2032. It has already got Rs. 8,500 crore through bills.

Traders believe that the stand that RBI has taken for now is going to further aggravate the situation for investors.

They believe that there is persistent sales in the bond market which is also hurting the appetite of the investors.

The yield for the once to mature in May 2020 was 7.8 per cent which is three basis points higher. It was 7.83 per cent on Friday.