10-YEAR BOND YIELDS EASE TO 7.04% ON LOWER OIL PRICES, RUPEE GAINS

Benchmark 10-year bond yield slipped at the open on May 21, lifting bond prices as a drop in crude prices checked a steep slide in the rupee after eight sessions.

The benchmark 10-year bond yield was trading at 7.04 percent after ending the previous session at 7.07 percent.

Brent crude was trading near $105 a barrel, falling around 5 percent overnight, after US President Trump said the negotiations for a peace deal with Iran were in the final stages but also warned that further attacks remain possible if talks fail, which kept traders cautious due to uncertainty.

US bond slipped after Brent crude prices fell. The 10-year bond yield eased below 4.6 percent, due to slightly easing inflationary pressures.  A sell-off in global bond markets has taken place in the previous sessions as concerns over increasing inflation mounted.

To aid domestic sentiment, the Reserve Bank of India (RBI) has announced a $5 billion buy-sell swap auction for a three-year tenor on May 26 to inject rupee liquidity into the banking system.

The rupee snapped an eight-day losing streak to open 52 paise higher at 96.30 against the dollar after ending the previous session at 96.82.  Though the rupee rebounded sharply, its year-to-date losses remain around 7 percent.

2026-05-21T04:10:20Z