FX.co ★ India 10Y Yield Rises on Oil Spike

The yield on India’s 10-year G-Sec climbed to around 6.9%, extending the previous week’s advance, as a sharp rise in crude oil prices and renewed geopolitical tensions triggered broad-based selling in the domestic bond market. Sentiment deteriorated after Brent crude surged more than 7% to $102.2 per barrel, following the US decision to block all maritime traffic entering and exiting Iranian ports after weekend talks failed to secure a peace agreement. This move stoked fears of fresh supply disruptions through the Strait of Hormuz.

The selloff was compounded by foreign portfolio outflows, as overseas investors continued to pare exposure to Indian debt amid uncertainty over the growth and inflation outlook. Traders now expect the benchmark yield to remain in a 6.85%–7.00% range, with markets closely tracking oil price movements, capital flows, and evolving geopolitical risks.