Rupee caught between further rise in US yields, yuan recovery
The yield on the U.S. 10-year Treasury hit the highest since 2007 on Monday on bets that a resilient U.S. economy will push the Federal Reserve to keep interest rates higher for longer.
The Treasury sell-off is less about the terminal rate for this tightening cycle and more about where the Fed Funds rate settles under normal conditions, ING Bank said in a note. (Image credit: Reuters)