Where is bond market headed?

It is a volatile period for the bond market with the 10-year yield spiking quite a bit over the last couple of days. The benchmark yield is at around 8.77%, these are very high levels.

In an interview to CNBC-TV18, Shobhit Mehrotra, senior fund manager and head of credit of HDFC AMC and Chaitanya Pande, head fixed income of ICICI Prudential AMC, speak about the bond market and give their outlook going forward. Below is the edited transcript of their interview with Udayan Mukherjee and Mitali Mukherjee of CNBC-TV18. Also watch the accompanying video. Q: Do you see further upside to the yield? Mehrotra: I hope not. These are fairly high levels. We have seen a very large amount of correction in a very short span of time. We hope that we are near the peak. A lot of the negative seem to have been priced in. Broadly, it