The benchmark Government security fell by a whopping 113 paise and was trading at Rs 87.73 on Monday at 3.20 pm, hurt by strong foreign institutional investor outflows.
In a day marked by a strong absence of investor interest in the debt markets, the yield on the benchmark Government security (G-Sec), which carries a coupon rate of 7.16 per cent, breached the 9 per cent mark and was trading at 9.07 per cent.
The G-Sec had closed at Rs 88.89 at a yield of 8.88 per cent.
"The bond yields in India have broadly tracked the US yields, which has risen to 2.88 per cent. Also a sharp slump in the equity markets have led to a fall in bond prices," said N.S. Venkatesh, Chief General Manager and Head of Treasury, IDBI Bank.
There is some heavy redemption from FIIs from the debt as well as the equity markets, he said.