10-year bond yield opens 2 bps higher tracking global rout

The latest market report highlights that The benchmark 10-year bond yield jumped at the open on September 25, as domestic debt tracked a multi-decade rout in US treasuries while oil remained above $100 a barrel.

The 10-year bond yield was trading at 7.1281 percent after ending the previous session at 7.1067 percent.

Global yields continued to march elevated, with the 30-year US treasury yield rising to its highest level since 2004 after more The US central bank officials stated additional ​interest rate hikes may be needed to curb high inflation.

The benchmark 10-year US bond yield breached the 5.1 percent mark, hitting its highest since 2007.

Markets are pricing ​in a near 70 percent chance of an October interest-rate gain by the Fed, according to CME's ‌FedWatch ⁠tool. The hike wagers have additionally been a tailwind for the dollar index, lifting it nearly 2 percent over the month so far.

Expectations are growing that the RBI will raise rates by 25 basis points at its upcoming monetary policy review.

Brent crude prices were trading near $105 a barrel, down a percent overnight.

US and Iranian ​negotiators in New York are exploring a phased path out of war ⁠that would involve Tehran reopening the Strait of Hormuz and Washington lifting ​its economic blockade of Iran.

Domestic market focus will shift later in the day to a debt auction where the government will look to sell Rs 34,000 crore worth of the benchmark paper.

The indian rupee opened six paise stronger at 95.90 against the dollar after closing the previous day at 95.96.

“Firm domestic buffers and RBI presence keep influence the pair. As a result, even with global rates working against the indian rupee, the impact on USD/INR may stay contained, particularly with the RBI closely watching the Rs 96 per dollar zone,” Amit Pabari, managing director at CR Forex Advisors, stated.