US Treasury selloff pushes India 10-year bond yield towards 7%

India's benchmark 10-year bond yield rose towards 7.00%, touching 6.9653% (its highest since June 8), tracking a sharp selloff in US Treasuries where the 10-year yield topped 4.75%. Fed rate hike probability for this month jumped to 66% from 41% a week earlier after Fed Chair Warsh signalled possible tightening if inflation fails to ease. Brent crude held near $91 a barrel amid US-Iran tensions, while India's April-June GDP growth surprised at 7.8% versus 7.1% estimate, adding to expectations of tighter RBI policy.