US bond yield spike weakens Sensex; Rupee snaps 2-day rally

DOMESTIC benchmark indices got here underneath heavy promoting strain as international markets turned weak and US bond yields rallied once more. The benchmark Sensex plunged 599 factors, or 1.16 per cent, to 50,846.08 and the Nifty50 fell 165 factors, or 1.08 per cent, to fifteen,080.75 within the sell-off.
US Treasury yields got here roaring again on Wednesday after a quick consolidation at the beginning of the week. The almost 6 per cent rise in 10-year charges on Wednesday to round 1.5 per cent stage drove the greenback increased in opposition to most main currencies. “Domestic markets along with its global peers mirrored the wounded trend of the US market. The surge in US bond yields added selling pressure in technology stocks, forced Wall Street to close lower. Blue-chips were much affected by the weak global cues, but mid and small caps with its increased investor confidence retained its positive momentum,” mentioned Vinod Nair, head-research, Geojit Financial Services.
The rupee on Thursday broke a two-day profitable streak to say no by 11 paise to shut at 72.83 in opposition to the US greenback on account of a rebound within the buck in abroad markets and muted home equities. At the interbank foreign exchange market, the native unit opened at 72.99 in opposition to the buck and witnessed an intra-day excessive of 72.62 and a low of 72.99.

The specter of excessive US bond yields undermined low-yielding, safe-haven property, such because the yen, the Swiss franc and gold. Benchmark 10-year US Treasury yield touched a session excessive of 1.535 per cent, and was final at 1.526 per cent.
At 11:29 a.m. ET, the Dow Jones Industrial Average rose 43.10 factors, or 0.14 per cent, to 31,313.19 and the S&P 500 gained 1.98 factors, or 0.06 per cent, to three,821.