MUMBAI: Indian rupee dropped to a lifetime low while the country's benchmark 10-year bond yield rose to its highest in more than three years as investor concerns over faster rate increases in the United States resurfaced following U.S. inflation data.
U.S. Treasuries dropped sharply in early Asia trade on Monday, with the heaviest selling in short-dated debt, as investors scrambled to price in an even steeper rate-hike path to tame inflation.
The partially convertible rupee was trading at 78.21/22 per dollar by 0350 GMT, after touching a lifetime low of 78.28. Rupee had ended at 77.8325 on Friday, when it hit its previous life low of 77.8750.
The benchmark 10-year bond yield was trading at 7.60%, its highest since Feb. 28, 2019. Yield had ended at 7.52% on Friday. (Reporting by Swati Bhat; Editing by Tom Hogue)