India bond yields see first weekly rise in five weeks

MUMBAI, Mar 15 (Reuters): Indian government bond yields inched higher to wrap up the week, which also witnessed the first upward move after four consecutive weeks of fall, mirroring a momentum in Treasury yields, though with a lower magnitude.
The benchmark 10-year yield ended at 7.0644 per cent, following its previous close of 7.0401 per cent.
The yield rose three basis points (bps) this week, after easing by an aggregate of 8 basis points in the last four weeks.
"There was some selling pressure this week tracking a rise in US yields, still the movement would be very subdued, even if the 10-year yield moves towards the 4.50 per cent mark," said VRC Reddy, treasury head at Karur Vysya Bank.
US yields jumped this week, with the 10-year yield rising as much as 25 bps for the week's lowest point to trade around the 4.30 per cent handle.
Yields rose after producer prices were more than estimates, which followed a higher-than-expected inflation reading earlier in the week, and led to further uncertainty about whether the Federal Reserve would start rate cutting later than the widely expected June.
The data points come just a week before the Fed's monetary policy decision, due on Wednesday, and have raised concerns that some members may tone down their rate cut expectations for 2024, and the updated dot plot may only show tow cuts for 2024.
The odds for a rate cut in June have now eased to 61 per cent from 74 per cent last week and 82 per cent last month, according to the CME FedWatch tool.