Indian bond yields rise further tracking U.S. peers; RBI in focus

Reuters
Brokers react while trading at a stock brokerage firm in Mumbai, India, February 1, 2018. REUTERS/Shailesh Andrade/Files

MUMBAI (Reuters) - Indian bond yields rose on Monday morning tracking their U.S. 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 Feb. 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.

A strong U.S. payrolls 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.

(Reporting by Swati Bhat; Editing by Sunil Nair)