Indian 10-year yield below 7% again as US peers decline

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Key Points

The 10-year benchmark 7.26% 2033 bond yield was at 6.9917% as of 10:00 a.m..

Indian government bond yields eased for a second straight session on Wednesday, with the benchmark bond yield back to below 7%, as U.S. yields dropped from their recent highs..

The reversal in U.S. yields has calmed nerves, pushing the 10-year below 7% again, but for the day we should not see any major moves, a trader with a primary dealership said...

U.S. yields declined across the curve as a deal to raise the U.S. debt ceiling and avoid potential default reassured investors.The two-year yield, considered to be a closer indicator of interest rate expectations, and the 10-year yield have moved around 15 basis points (bps) lower from their recent highs..

The data could also guide the Reserve Bank of Indias monetary policy decision, due on June 8.Falling oil prices also aid sentiment for local bonds as India is one the largest importers of the commodity..

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