MUMBAI, Jan 8 (Reuters) – Indian government bond yields
are likely to rise in early trading on Monday, mirroring U.S.
yields after the closely watched non-farm payrolls report showed
continuing strength in the U.S. labour market.
The 10-year benchmark bond yield is expected
to trade in the 7.23-7.26% range following its previous close at
7.2348%, a trader with a private bank said.
“The 10-year U.S. yield surged and sustained above 4% so we
may see an upward movement in local yields. Amid a lack of fresh
cues, yields may remain range-bound during the day,” the trader
added.
U.S. Treasury yields rose on Friday as persistent strength
in the labour market sparked concerns of accelerating inflation
and the Federal Reserve’s rate cuts.
Non-farm payrolls rose by 216,000 jobs in December, while
economists polled by Reuters had forecast payrolls increasing by
170,000 jobs.
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