The Tyro Payments Ltd (ASX: TYR) share price is rallying well into the green in afternoon trade on Thursday.
At the time of writing, the Tyro share price is trading 17.61% higher at 83.5 cents. That's a shade above its 52-week low of 60 cents on 30 June but way down on its 52-week high of $4.39 recorded back in September last year.
In broad market moves, the S&P/ASX All Technology Index (ASX: XTX) is up 2.28% on the day.
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What's up with the Tyro share price?
Despite no news out of Tyro today, the financial technology company did post its weekly transaction value (TV) update on Monday.
Recall that Tyro committed to providing weekly TV updates until its FY22 results were released.
In the first round for H1 FY23, the company showed a 46% year-on-year increase from 1 July to 22 July.
This equalled roughly $2.4 billion compared to FY22's $1.63 billion up until the same point in July. However, the Tyro share price fell 5% on the day of the release.
Aside from that, the payments sector is up today amid the release of Australia's latest inflation data.
As Banking Today notes: "Tyro's business model is highly exposed to over-the-counter card transactions." That's a potential tailwind in a high-inflation environment.
This comes after the US Federal Reserve announced another 0.75% interest rate hike overnight to a range of 2.25%–2.5%.
Fed chair Jerome Powell said he "anticipates that ongoing increases in the target range for the federal funds rate will be appropriate".
The move is "the fastest tightening of monetary policy since former Fed Chair Paul Volcker battled double-digit inflation in the 1980s", Reuters reported.
Surprisingly, bond markets received the news quite well, with yields on long-dated Australian and US government bonds continuing to retrace downward in a longer-term trend.
The yields on long-dated treasuries often serve as a proxy for the valuation of risk assets, tech shares in particular. An increase in yields results in a de-rating to tech multiples, for example.
Hence, with the pullback in yields, the field is ripe for ASX tech shares such as Tyro to catch a bid, as seen below.
Despite this, the Tyro share price is down more than 75% in the past 12 months.
