Government bond yields rise, prompting Indian mutual funds to consider more sales

Indian mutual funds are set to sell more government bonds after offloading about $4.5 billion worth since July.
Fund managers said the Reserve Bank’s first rate rise in nearly four years has raised expectations of a longer tightening cycle.
The 10-year bond yield is close to 7.35%, its highest in nearly three years, while the five-year yield has topped 7.05%.
Funds are moving money into short-term debt instead, with some cutting the average duration of their holdings sharply.

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