India 10Y Yield at 1-Month High

2026-03-20 07:22 By Mariene Camarillo 1 min. read

The yields on India’s 10-year G-Sec rose to around 6.77%, its highest in five weeks, as investors reassessed the impact of volatile oil prices on inflation, growth, and monetary policy.

Government bonds extended losses for a sixth consecutive session as markets priced in the risk that persistently high crude prices could lead to tighter policy conditions.

Brent crude, which has fluctuated amid geopolitical tensions, hovered around $107 per barrel, above policymakers’ comfort levels.

At the same time, funding pressures in the banking system have pushed lenders toward market borrowing, with weak deposit growth and higher bulk deposit rates straining traditional funding sources.

Indian Bank is among those tapping the market, planning to raise over $500 million through seven-year infrastructure bonds.

Meanwhile, the rupee weakened past 93 per dollar to a fresh low, reflecting concerns over a widening current account deficit and continued global risk pressures.



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