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On Monday, the yields on Indian government bonds increased slightly, following the increase in U.S. Treasury yields. However, dealers do not anticipate that the benchmark 10-year yield would surpass 7.25%.

As of 10:00 a.m. IST, the benchmark bond’s yield was 7.2301%, down from its previous close of 7.2278%. It reached a four-month high of 7.2447% earlier in the day.

There was an attempt to surpass the critical level of 7.25% at opening, but since that has been protected, we are likely to see rangebound moves in bond yields, with focus on Treasuries,” a trader at a government-owned bank stated.