FX.co ★ India 10Y Yield Nears 4-Week High

The yield on India’s 10-year government security climbed to about 6.83%, approaching a four-week high as demand for sovereign debt softened following a renewed surge in oil prices driven by escalating US–Iran tensions. Investor sentiment weakened after the United States carried out an eighth consecutive night of strikes on Iran over the weekend, with both sides stepping up attacks after the collapse of an interim ceasefire. The conflict has also disrupted traffic through the Strait of Hormuz, pushing Brent crude above $90 per barrel and intensifying concerns about potential supply shocks and imported inflation for major oil importers such as India. At the same time, investors remained cautious ahead of a decision on whether to include Indian government bonds in the Bloomberg Global Aggregate Index, a move that could draw additional foreign inflows. Foreign investors have already been net buyers of more than $4.3 billion in Indian bonds since June 1 under the Fully Accessible Route.