The yield on India’s 10-year G-Sec rose to around 6.67%, reversing from the previous session, as a sharp jump in oil prices and higher US yields spurred selling. Brent crude topped $100 per barrel after Iran sank two Iraqi oil tankers, intensifying concerns about imported inflation and rupee depreciation in India, which relies heavily on energy imports. The 10-year US yield also neared 4.25%, adding external pressure on domestic long-term rates and prompting cautious trading among investors. The Reserve Bank of India has intervened in the secondary market, buying bonds to help cap the rise in yields, while long-term investors purchased 53 billion rupees ($574 million) of government debt on Wednesday. Despite these measures, traders remain wary of further volatility as energy prices stay elevated and global rates trend higher. The rupee has hovered near record lows, reflecting continued market sensitivity to oil shocks and geopolitical tensions.
