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 robust economy and elevated inflationary pressures, which have led to concerns over the…
