New Delhi, Nov. 1 -- India's 10-year government bond yields could ease to 6.75-7 per cent by March 2027, while the rupee is likely to maintain an appreciating bias amid expectations of a moderation in US Treasury yields and a weakening dollar, according to a report by SBI Research.

However, the research firm cautioned that short-term volatility could push Indian bond yields as high as 7.6 per cent, while the US 10-year Treasury yield could temporarily rise to 5.25-5.35 per cent from its current level of around 4.9 per cent.

In its latest Ecowrap report, SBI Research said US Treasury yields are expected to settle around 4.75 per cent in its most likely scenario, although elevated government borrowing requirements and an imbalance between...