FX.co ★ India 10Y Yield Extends Gains

The yield on India’s 10-year government security (G-Sec) climbed to around 6.95%, extending the previous week’s gains as higher crude oil prices triggered broad-based selling in the debt market. The move in yields followed Brent crude holding elevated levels near $105 per barrel.

Investor sentiment has also weakened due to a decline in the relative appeal of Indian debt for foreign investors. Elevated currency hedging costs have compressed returns, making Indian securities less attractive compared with other markets.

At the same time, recent reports suggest a potential shift in the geopolitical backdrop. Iran has proposed a phased plan that would prioritize a ceasefire while deferring nuclear negotiations. The proposal has reportedly been conveyed to Washington through intermediaries, though the U.S. response remains unclear.

Looking ahead, traders expect the benchmark 10-year G-Sec yield to remain in a range of 6.85%–7.02% in the near term, reflecting persistent uncertainty stemming from global risk sentiment and cross-border capital flows.