Current G-sec yields are attractive, and some investors are finding value in government bonds and selective buying interest is visible, Shashi Dhar, chief general manager – treasury and global markets at Bank of Baroda, said in an interview. He added that buying is being observed as yields have fallen past a certain point, indicating that those levels are appealing. Since the start of the West Asia conflict, the yield on the 10-year benchmark bond has risen by as much as 47 bps to 7.13%, driven by inflation concerns. Currently, it is trading around 7%. Market Pricing The market appears to have priced in the possibility of further policy tightening over coming quarters. Dhar believes that upside in yields from current levels may remain relatively contained unless there is a material adverse inflation or geopolitical shock. “Going ahead, I do not see benchmark yield going much higher, as most possibilities of rate hikes have already been factored in at the current levels.