India’s benchmark 10-year bond yield is more range-bound after the early jump on the back of strong US jobs data.
The 10-year yield at 7.58 percent,up 8 basis points (bps) on the day. It rose to a two-month high of 7.63 percent earlier in the session.
Traders expect the 10-year bond yield to hold between 7.55 to 7.61 percent during the session.
“State-run banks have been on the buy side,which is providing temporary support. We should stay largely range-bound for the rest of the day,” says a senior dealer with a foreign bank.
Rate cut hopes in the July policy have virtually disappeared after the rupee rout,with funding of the current account deficit being a key concern.