India 10-Year Yield Rises on Higher US Yields

2026-05-20 07:20 By Mariene Camarillo 1 min. read

The yield on India’s 10-year G-Sec rose to 7.12%, extending gains for a third consecutive session as domestic bonds tracked a broad selloff in US Treasuries.

A sharp rise in US yields to multi-month highs has compressed the India–US rate differential.The spread between 10-year Indian and US yields has narrowed to around 244 basis points, its tightest in two months, with traders noting discomfort when the gap approaches or falls below 250 bps.

This narrowing has also weighed on foreign portfolio flows, which have slowed after a stronger buying phase earlier in the month.

US yields have risen on expectations of renewed Federal Reserve rate hikes, pushing long-end rates higher and rippling across global bond markets.

In India, elevated crude prices near $111 per barrel are adding to inflation concerns, further influencing sentiment and keeping yields elevated.



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