Bond yields rise 8 bps, as OIS rates surge on US inflation data

The rupee weakened versus the dollar as the market braced for a possible 100-basis-point rate hike by the Federal Reserve next week following a higher-than-expected inflation print in the US

Government bond prices fell sharply on Thursday, with yield on the 10-year benchmark paper climbing 8 basis points, as a surge in overnight indexed swap rates spilled over into the sovereign debt market, dealers said.

The rupee too weakened versus the dollar as the market braced for a possible 100-basis-point rate hike by the Federal Reserve next week following a higher-than-expected inflation print in the US.

Yield on the 10-year benchmark 7.26 per cent 2032 bond settled at 7.20 per cent as against 7.12 per cent on Wednesday. Bond prices and yields move inversely. A rise of one basis point