Rupee appreciates, govt bond reverses gains post US non-farm payroll data

The rupee appreciated 9 paisa on Monday as the Dollar Index fell after US non-farm payroll data came in at 187,000 against the expected 205,000 for July. The rupee settled at Rs 82.75 per US dollar, against Rs 82.84 on Friday.

However, the government bonds gave up early gains tracking intra-day rise in US Treasury yields as investors assessed the US key inflation data for July due on Thursday.

The yield on the benchmark 10-year government bond ended flat at 7.20 per cent.

“The US Treasury yield rose by 5-6 basis points during the day, so domestic yields had to go up,” a dealer at a state-owned bank said.

The yield on the benchmark 10-year government bond touched the day’s low of 7.15 per cent in early trade, tracking an overnight fall in US Treasury yields post non-farm payroll data. The yield on the 10-year US Treasury note fell 15 basis points on Friday after hitting a nine-month high of 4.21 per cent.  

Meanwhile, on the domestic front, the Reserve Bank of India’s Monetary Policy Committee will deliver the outcome of its three-day meeting on Thursday. The domestic rate setting panel is widely expected to maintain status quo on interest rates not just for the upcoming meeting, but for the current financial year. The repo rate stands at 6.50 per cent.