Middle East tensions jolt Bond yields and Rupee

Wednesday, 4 March 2026 00:22 - - {{hitsCtrl.values.hits}}

Wealth Trust Securities said the secondary Bond market began the week with yields spiking sharply in early trade, reflecting an immediate reaction to escalating tensions in the Middle East.

However, the initial sell-off was met with renewed buying at higher yield levels, triggering a firm rebound as the session progressed. Despite the recovery, two-way quotes in the secondary market were observed closing higher compared to the previous trading day. Trading volumes were described as healthy, with activity remaining robust as investors recalibrated positions in response to the evolving geopolitical situation.

The foreign exchange market also witnessed notable volatility. During intraday trading, the rupee moved between a high of Rs. 309.70 and a low of Rs. 310.40 against the US dollar before settling at the weaker closing level.