Benchmark yield at near 4-month high on spike in US yields, oil prices
The yield on the benchmark Indian government bond hit its highest level in nearly four months on Monday, tracking the relentless spike in the U.S. yields as well as oil prices.
The benchmark Indian government bond yield ended at 7.4758%, highest since June 21. It had ended at 7.4596% on Friday, and had risen 10 basis points in last two sessions.
“The selling for the time being is done, and we should see bonds in thin range till inflation data, especially of the U.S. which would provide more clarity on their rate hike cycle, while India’s reading is more or less priced in,” said Debendra Kumar Dash, senior vice president, treasury, at AU Small Finance Bank.
