MUMBAI, March 18 (Reuters) – Indian government bond
yields extended gains at the start of the week, with the
benchmark yield at a more than two-week high, tracking the rise
in U.S. Treasury yields.
The benchmark 10-year yield was at 7.0754% as
of 10:10 a.m. IST on Monday, following its previous close of
7.0644%. Earlier in the day, the yield rose to 7.0798%, the
highest since March 1.
“All the factors are bearish now, with U.S. yields
threatening to test new highs in the run up to the Federal
Reserve policy decision later this week,” a trader with a
state-run bank said.
U.S. bond yields rose in all five trading sessions last
week, with the 10-year yield jumping 22 basis
points, marking its biggest rise in five months. The yield is
hovering around the critical level of 4.30%, a breach of which
could lead to more gains.
The rise in yields is fuelled by indications of a…
