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India bonds hit near 33-month low, rupee weakest in 16 months on higher oil, inflation

An India Rupee note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration

MUMBAI (Reuters) - Indian bonds and the rupee currency weakened to multi-month lows in early trade on Tuesday, as global crude oil prices inched up and the local inflation print came in higher than expected.

The 10-year benchmark bond yield rose 7 basis points to 7.90 percent on Tuesday, its highest since Aug. 25 2015, while the Indian rupee fell to 67.76 against the dollar, its weakest since Jan. 31, 2017 from its previous close of 67.50.

Markets are likely to remain volatile during the day ahead of Karnataka state election results due in a few hours.

Reporting by Suvashree Dey Choudhury and Abhirup Roy; Editing by Biju Dwarakanath