10-year bond yield eases to nearly three-month low, rupee gains

Softening of crude oil prices reduces upside risks to India's inflation, given that the country is among the biggest importers of the commodity

Government bond prices shot up on Monday, with the yield on the 10-year benchmark paper closing at its lowest level in two-and-a-half months, as traders grew increasingly optimistic about the Reserve Bank of India (RBI) adopting a less aggressive approach towards rate hikes at its policy meeting this week.

The rupee, too, strengthened versus the dollar and closed at 79.03 on Monday. The domestic currency settled at 79.27 on Friday.

The yield on the 10-year benchmark 6.54 per cent 2032 paper settled at 7.24 per cent, the lowest closing yield for the security since May 11. The bond had settled