Indian bonds fell sharply a day after the federal budget, with the 10-year benchmark bond yield spiking to its highest in nearly a year, as record-high government borrowings dampened the already weak investor sentiment. The benchmark 6.48% 2035 bond yield jumped 8 basis points to 6.78% on Monday, its highest since March, after the government announced it will borrow a gross of 17.2 trillion rupees ($187.5 billion) in the next fiscal year. WHY IT'S IMPORTANT The 10-year government bond yield, which drives the broader yield curve, is crucial for deciding borrowing costs across the economy.