Why is the Tyro Payments share price blasting 10% higher?

The Tyro Payments Ltd (ASX: TYR) share price is taking off on Wednesday, and it’s not alone in its gains.

The All Ordinaries Index (ASX: XAO) financial technology share is joined in the green by many of its tech-focused peers as the sector outperforms.

At the time of writing, the Tyro Payments share price is 70 cents, 10.24% higher than its previous close.

For context, the broader market is struggling today. The S&P/ASX 200 Index (ASX: XJO) is down 0.35% while the All Ords has slipped 0.31%.

Let’s take a closer look at what’s going on with the ASX tech sector today.

Tyro Payments share price lifts on Wednesday

The Tyro Payments share price is launching higher alongside its home sector. The S&P/ASX All Technology Index (ASX: XTX) is up 3.46% right now while the S&P/ASX 200 Information Technology Index (ASX: XIJ) has lifted 3.36%

Tech stocks’ strong performance comes amid falling bond yields and rising interest rates.

The Reserve Bank of Australia lifted the nation’s cash rate 50 basis points to 1.35% in its July meeting yesterday. But that hasn’t seemingly dinted ASX tech shares.

Any potential rate-related shock seems to have been absorbed as US Treasury note 10-year yields slipped to 2.8% overnight.

As my Fool colleague Zach reported earlier today, government bond yields and the valuation of risk assets (such as shares) move in opposites.  

Thus, the shift in bond yields may have bolstered ASX tech shares like Tyro Payments.

But today’s gain hasn’t been enough to boost the stock back into the long-term green. The Tyro Payments share price has tumbled 76% year to date and 81% over the last 12 months.

The post Why is the Tyro Payments share price blasting 10% higher? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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