FX.co ★ India 10Y Yield Hits 12-Week High

The yield on India’s 10-year G-Sec climbed to around 6.95%, extending the previous session’s gains to reach a twelve-week high as expectations of tighter monetary policy and elevated oil prices continued to push yields higher. Hawkish remarks from Fed Chair Kevin Warsh boosted the odds of a US rate hike in September, keeping US Treasury yields elevated and weighing on demand for Indian government securities. Domestically, investor sentiment remained cautious ahead of the April–June GDP release, as a stronger-than-expected growth print could reinforce expectations of policy tightening by the RBI. At the same time, Brent crude rebounded toward $90 per barrel, intensifying inflation concerns and further narrowing the room for monetary easing. Sentiment toward government bonds was also pressured by the RBI’s August meeting minutes, which signaled that policymakers could consider raising rates if inflation risks broaden.