FX.co ★ India 10Y Yield Rises to 2-Week High

The yield on India’s 10-year government security (G-Sec) climbed to about 6.97%, extending its advance to a two-week high amid weakening global risk sentiment and continued volatility in energy markets. Crude oil prices rose for a fifth consecutive session, with Brent crude surpassing $105.50 a barrel, as uncertainty surrounding stalled US–Iran talks kept supply risks elevated. The rally in oil has intensified inflation concerns and weighed on sovereign debt markets, driving global bond yields higher. US Treasury yields also strengthened in tandem with a firmer dollar, as investors moved towards safe-haven assets in response to deteriorating geopolitical conditions. However, the rise in Indian bond yields was partly capped by persistent foreign portfolio outflows from domestic equities, with cumulative withdrawals earlier this month briefly surpassing last year’s record annual outflow of $18.79 billion.