Bond yields rise further tracking US peers; RBI in focus

Indian bond yields rose on Monday morning tracking their US counterparts while fears of the Reserve Bank of India adopting a more hawkish stance after the recent central budget also weighed on sentiment.

The RBI is set to hold its monetary policy meeting on February 6-7, the outcome of which is due at 0900 GMT on Wednesday.

The benchmark 10-year bond yield was at 7.58 percent, up 2 basis points on the day by 0350 GMT. Yields had risen as much as 6 bps to 7.62 pct in early trade.

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A strong USpayrolls report on Friday raised concerns the Federal Reserve might hasten to increase interest rates to stem inflation, compounding a bond market rout that pushed the yield on the benchmark 10-year Treasury note to a four-year high.