Indian government bond yields extend ten-year losing streak amid rising oil and US rates
Indian sovereign bond yields rose for a tenth consecutive week, marking the longest decline in three decades as higher crude prices and US Treasury yields pressured markets.
For the tenth week in a row, yields on Indian government bonds rose, reaching 7.47% on the 10-year benchmark and marking the worst losing streak in thirty years. The increase was driven by higher crude oil prices, with Brent trading around $114 per barrel, and rising US Treasury yields that heightened risk aversion. The rupee weakened to 94.94 per dollar after a brief rise, reflecting the same pressures.
Meanwhile, India's foreign exchange reserves dropped $5.01 billion to $721.02 billion, extending a six-week fall that totals $65 billion since early September. Gold reserves rose modestly, while foreign currency assets fell by $5.76 billion.
Why it matters
Rising bond yields and falling reserves signal tighter financing conditions and heightened market volatility for India.
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