Indian bond market under pressure as oil prices surge. Government bond yields rose sharply Monday, with the benchmark 2035 yield climbing to 6.8261% from 6.7369% Friday. Brent crude near $113 a barrel and elevated U.S. Treasury yields drove the selloff. The Indian rupee hit a fresh record low of 93.94 against the dollar, reflecting mounting external pressures. For India, the world's third-largest crude importer, higher oil prices threaten to elevate domestic inflation and widen the current account deficit. U.S. Treasury yields climbed on inflation concerns, with the 10-year yield above 4.40% for the first time in eight months. Domestically, heavy debt supply and uncertainty over central bank support compound market stress. Indian states plan record bond issuance this quarter, adding 574 billion rupees through Tuesday's sale.
