India's 10-year government bond yield surged seven basis points to 6.

India's 10-year government bond yield surged seven basis points to 6.94% Friday, marking the steepest weekly rise since May 2022. The sharp jump stems from a fuel excise duty cut that clouded fiscal prospects, compounded by heavy state bond issuance and climbing oil prices. Brent crude climbed 1.73% to $109.88 per barrel, adding pressure to inflation concerns. Bond traders face unprecedented volatility with the West Asia conflict keeping oil elevated and uncertainty high. Financial institutions are bracing for mark-to-market losses as yields have climbed over 30 basis points this quarter. Market participants have grown pessimistic, abandoning expectations that yields could fall to 6.75% even in a best-case scenario of regional peace.