India's 10-year government bond yield rises due to surging oil prices

⑴ India's 10-year government bond yield rose to around 6.67%, rebounding from the previous trading session, mainly due to a sharp increase in oil prices and rising US Treasury yields triggering market sell-offs. ⑵ After Iran sank two Iraqi oil tankers, Brent crude broke through the $100 per barrel mark, intensifying concerns about imported inflation and rupee depreciation in India, which is heavily dependent on energy imports. ⑶ The US 10-year Treasury yield is also approaching 4.25%, increasing external pressure on India's domestic long-term interest rates and prompting investors to adopt cautious trading strategies. ⑷ The Reserve Bank of India has intervened in the secondary market, purchasing bonds to help curb the rise in yields; meanwhile, long-term investors bought 53 billion rupees (approximately $574 million) of government debt on Wednesday. ⑸ Despite these measures, traders remain alert to further volatility as energy prices stay high and global interest rates trend upward. The rupee hovers near historic lows, reflecting the market's ongoing sensitivity to oil shocks and geopolitical tensions.