FX.co ★ India 10Y Yield Climbs Near 1-Month High

The yield on India’s 10-year government security (G-Sec) rose to around 6.75%, nearing a one-month high, as a sharp rally in oil prices and a weakening rupee sparked a selloff in sovereign debt. Brent crude jumped about 25% to above $115 per barrel after intensifying conflict in the Middle East disrupted shipments through the Strait of Hormuz, stoking inflation fears in the world’s third-largest crude importer. The surge in energy costs, combined with currency depreciation, amplified concerns over higher import bills and broader price pressures, leading investors to seek higher returns on government bonds. According to market participants, the Reserve Bank of India’s planned open market purchase of INR 500 billion in government securities later in the day, with a similar operation scheduled for Friday, may help moderate the rise in yields and support stability in the debt market.