The 10-year benchmark bond yields rose by 8 basis points, logging its biggest single-session rise in over seven months amid the rise in US Treasury yields, weakening rupee and the sell-off in the equity markets.
The 10-year yield ended at 6.85 per cent, its highest since November, compared with its previous close of 6.77 per cent. The bond yield posted its biggest single-session rise since June 4, 2024.
“The rise in crude oil prices, US bond yields and the declining Indian rupee have added to the weak sentiment in the money market,” said a dealer. US bond yields rose to 4.8 per cent, the highest since November 2023. US yields are likely to cross the 5 per cent in the coming days as strong economic data is expected to fuel Fed rate concerns.
According to Goldman Sachs, the RBI’s forex sales to quell volatility in the rupee in a strong dollar environment, has drained domestic banking system liquidity and tightened financial…
