The latest rate hike by the Reserve Bank of India (RBI), following a rise in interest rates in the world's major economies, has done little to reverse the long-term trend of a steady decline in the spread between the India 10-year government bond and the US 10-year government bond. The yield spread between Indian and the US 10-year treasuries stayed near a 22-year low of 1.94 per cent, or 194 basis points (bps), on Thursday despite a 25 bps policy rate hike by the RBI to 5.5 per cent on Wednesday.