New Delhi, Aug. 22 -- In the country's financial markets, the intricate balance between bond prices and yields has taken centre stage as policymakers, long-term investors, and savers evaluate their responses to interest rate movements due to both domestic and international geopolitical developments.

The benchmark 10-year government bond yields climbed to 6.55% this week. Such a move makes it imperative to carefully understand the ongoing developments in the bond markets, as it will be vital for those seeking to navigate today's environment.

Bond prices and yields always move in opposite directions. This is a fact driven by the fixed coupon structure that bonds carry. Furthermore, as yields rise in the broader market, the prices of older...