The 10-year bond yield in the country has reached a new level in the past five years recently.

It is to be mentioned here that the rise in the yield is the result of the speculation that investors are expected to pare their holding after the inflation level accelerated unexpectedly.

For the record, the level of the yield has reached the highest level since the time of April as banks have borrowed an estimated sum of close to 756 billion rupees each day from the central bank’s repurchase auction during the last entire week.

It may be noted here that the level is higher as compared to the Rs. 114 billion that was there in the previous week. According to a commerce ministry statement published on Oct. 15, the wholesale price index rose 8.62% in September and an 8.5% gain it registered in the month of August.

Rajeev Radhakrishnan, who manages the equivalent of $4 billion of debt in Mumbai at SBI Funds Management Pvt., a unit of the nation’s biggest bank said that the level of inflation is a big cause of worry as the data recently released wasn’t positive.