10-year bond yield eases 10 bps to 7.31% in sharpest fall since April

The benchmark 10-year bond yield fell nearly 10 basis points to 7.31%.

Yield on the bond opened at 7.40% Monday and consistently declined over the day in tandem with the decline in oil prices. Traders however are refraining from aggressively taking fresh positions ahead of the US midterm elections on Tuesday.

The 10-year bond yield experienced a notable decline to 7.31% following a decrease in oil prices. This decline represented the steepest drop observed since early April of this year. Oil prices fell nearly 5%, retreating from a six-month peak that occurred last week. Traders are currently holding back on taking fresh positions as they await the US midterm elections.

Brent crude futures fell nearly 5% to $108 per barrel in Asian trade, retreating from a six-month peak, reached last week.

"With crude prices easing and the rupee strengthening, market is finding some footing. There was also a better surplus in the banking system today, which reduced further pressure," said Gopal Tripathi, head of treasury and capital markets at Jana Small Finance Bank.