India's 10-year bond yield climbs past 7.02% as oil and debt fears spread
Indian government bonds fell this week while Brent crude neared $103 a barrel and the US 10-year Treasury yield hovered near 5%, pushing the Indian benchmark to its three-month high.
Indian government bonds experienced a sharp decline this week as surging oil prices and fears over global debt impacts investor sentiment. The benchmark ten-year bond yield climbed past seven percent, reaching 7.0233% on Friday, which is the highest level in more than three months. This drop added 6 basis points to the rate and extended a loss streak into a fourth consecutive week. Pressure increased further after the six-and-a-half-year bond yield jumped 10 basis points to 6.6202%. Rising oil prices contributed significantly to this downturn, with Brent crude approaching $103 per barrel in Asian trade after gaining more than 7.5% during the past week. Attacks on shipping routes in the Middle East raised concerns about supply disruptions. The financial weakness mirrored global trends, as the US 10-year Treasury yield hovered around 4.97%. Investors are repricing inflation risks and anticipating a near-term U.S. interest rate hike, which drove American yields toward the 5% mark.
