MUMBAI - Indian government bond yields jumped on Thursday, tracking a similar move in U.S. peers, after the Federal Reserve stuck to its hawkish tone on monetary policy, leading to speculations of a higher terminal rate.

The benchmark 10-year yield ended at 7.4829%, after closing at 7.4044% on Wednesday. The yield posted its biggest single session rise since Oct. 10.

"Bonds yields are expected to remain on the higher side, as the rate hike cycle will continue for some more time," said Abhishek Upadhyay, senior economist at ICICI Securities Primary Dealership.

The Fed raised interest rates by 75 basis points, as was widely expected, on Wednesday and said its battle against inflation will require borrowing costs to rise further.

Fed Chair Jerome Powell said there was more ground for the Fed to cover for the target federal funds rate to reach a "sufficiently restrictive" level that will slow inflation.

The 10-year U.S. yield rose above 4.10%, but the two-year U.S. yield, which is a more direct indicator of rate expectations, rose closer to its highest level in over 15 years.

Traders will also focus on the outcome of the Reserve Bank of India's special meeting later in the day, called to discuss the central bank's response to the government after failing to meet its inflation target for three straight quarters.

However, the RBI will not immediately release details of its written response as it does not have the authority to do so, Governor Shaktikanta Das said on Wednesday.

Meanwhile, New Delhi aims to raise 300 billion Indian rupees ($3.62 billion) through bond sales, including of liquid five- and 14-year bonds, on Friday.

($1 = 82.8925 Indian rupees)

(Reporting by Dharamraj Lalit Dhutia; Editing by Savio D'Souza)