US Treasury selloff pushes India 10-year bond yield towards 7%
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The yield on the benchmark 6.94% 2036 bond was at 6.9559% as of 10:00 a.m. IST on Tuesday, after closing at 6.9452% on Monday. It earlier rose to 6.9653%, its highest since June 8. "Rising U.S. Treasury yields and the escalation in geopolitical risk have dealt a fresh blow to Indian bonds. With the benchmark yield approaching 7.00%, market appears vulnerable to further selling pressure unless global rates retrace meaningfully," trader with a primary dealership said. Reaching the Rs 25 lakh milestone signifies a transformative moment in wealth creation for young investors. It indicates that accumulated capital is now playing a crucial role in enhancing portfolio growth, alongside new savings. With market downturns having a more pronounced effect in rupee terms, effective risk management strategies become essential. Moreover, optimal asset allocation is key for achieving a balance between growth and stability. U.S. forces struck two Iranian missile launchers, prompting retaliatory attacks on U.S. personnel in Jordan. The seven-month conflict has kept oil prices high, raising inflation concerns and expectations of tighter monetary policy. The U.S. 10-year Treasury yield topped 4.75% on Monday for the first time since January 2025 and rose further in Asian trade. According to CME FedWatch, the probability of a 25-basis-point Fed rate increase later this month has risen to 66%, from roughly 41% a week earlier. The repricing followed Federal Reserve Chair Warsh's Jackson Hole remarks, in which he said the central bank could need to raise rates if inflation fails to move back toward its 2% target. The benchmark Brent crude held near $91 a barrel, adding pressure on major oil importers such as India. Meanwhile, the country's economy grew 7.8% on-year in April-June, above the 7.1% estimate in a Reuters poll, adding to the potential for the Reserve Bank of India to move towards tightening. RATES India's overnight indexed swap rates moved marginally higher in a shallow-volume session. The one-year swap and the two-year swap were not yet traded, while the five-year rate was 3 basis points higher at 6.51%. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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