MUMBAI: Indian government bonds slumped in early trades on Wednesday after a central bank panel suggested targeting consumer price inflation, which if accepted, may result in interest rates staying higher for long.

The benchmark 10-year yield rose 9 basis points to 8.64 percent.

The Reserve Bank of India should make managing inflation its main policy objective and set monetary policy by committee, a central bank panel has recommended, a shift that would bring its practices in line with many other central banks.