Bond yields plunge, rupee gains as easing crude oil buoys markets

The rupee ended the day at 77.98 to a dollar against a close of 78.07 on Friday

Government bond prices surged on Monday, with yield on the 10-year benchmark paper dropping 10-basis points (bps). This comes as a sharp decline in global crude oil prices eased some worries over elevated domestic inflation, treasury officials said.

The softening of crude prices also buoyed the domestic currency, which regained some ground after settling at a record closing low on Friday.

Yield on the 10-year benchmark 6.54 per cent 2032 paper nosedived by 10 bps to close at 7.44 per cent or Rs 93.90.

Bond prices and yields move inversely and a decline of 1 bps on the 10-year paper