Bonds strengthen sharply as growth fears drag down US debt yields

Rupee notches up gains as dollar index eases; OPEC meet in focus

Government bonds strengthened sharply on Tuesday, with yield on the 10-year benchmark paper hurtling 11 basis points (bps) as US bond yields declined to their lowest levels in almost two months, dealers said.

A fall in US debt yields increases the appeal of fixed-income instruments in emerging markets such as India.

Yield on the 10-year benchmark 7.26 per cent 2032 bond settled at 7.36 per cent, against 7.47 per cent on Monday. Bond prices and yields move inversely. A fall of 1 basis point in the 10-year yield corresponds to a rise in price of around 7 paise.

With the