India 10Y Yield Extend Gains

2026-03-04 07:21 By Mariene Camarillo 1 min. read

The yields on India’s 10-year G-Sec rose to 6.7%, extending gains for the third consecutive session as escalating geopolitical tensions spurred investor caution.

The surge in oil to a 19-month peak, fueled by intensified US-Israeli strikes on Iran and retaliatory attacks on energy infrastructure and shipping in the Strait of Hormuz, added pressure on the market.

Higher crude costs and a weaker rupee are expected to push inflation up and widen the current account deficit, keeping yields elevated ahead of Friday’s final central government debt auction.

Traders noted that intervention from the Reserve Bank of India in the secondary market could temper further upward moves, while overnight index swap rates are likely to track rising US yields and global oil prices.

Investors also noted strong services sector growth, with the HSBC India Services PMI revised to 58.1 and the Composite PMI rising to 58.9, the fastest since November, reflecting resilient demand despite external pressures.



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