Mumbai: Bond yields rose on Monday despite lower US peers and global crude as gains in equity markets regionally reduced the allure for safe-haven government debt.
The MSCI index of Asian stocks ex-Japan was up 2% while the Bombay Stock Exchange (BSE) index Sensex was up 1.5%.
At 9:15 am, the yield on the 10-year benchmark bond was up 3 basis points (bps) at 8.33%.
US Treasuries prices rose on Friday after the Federal Reserve chief left the door open for more measures to help a wobbly economy but offered no concrete plans for further monetary stimulus in a highly anticipated speech.
In Asian trade, the 10-year benchmark US bond yield was at 2.21%, steady from late New York trade on Friday, when it had dropped 4 bps.
Brent crude fell below $111 on Monday as oil refiners and terminals along the US east coast weathered the worst of a tropical storm, easing fears of fuel supply disruptions in the world’s top oil consumer.
Traders said the 10-year bond may hold in a 8.30 to 8.35% band as lower oil and US yields may limit the rise. India will sell Rs11,000 crore ($2.4 billion) of government bonds on 2 September, the Reserve Bank of India (RBI) said in a release on Friday.