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India 10 year bond yield rises to 6.75 Percent as crude crosses 110 dollars
Indian government bond yields moved higher as global crude oil prices surged above $110 per barrel amid escalating West Asia tensions. The benchmark 10 year yield rose about 7 basis points, reflecting inflation concerns and risk aversion. Rising oil prices are also putting pressure on the rupee and complicating monetary policy expectations.
By Finblage Editorial Desk
9:38 am
9 March 2026
Indian sovereign bond yields rose sharply on March 9 as global crude oil prices continued to surge amid escalating geopolitical tensions in West Asia. The benchmark 10 year government bond yield climbed to 6.7518 percent in early trade, compared with the previous session’s close of 6.6898 percent, marking an increase of roughly 7 basis points.
The upward move in yields followed a sharp rally in global crude oil prices as the conflict involving the United States Israel alliance and Iran entered its second week. Supply disruption concerns around the Strait of Hormuz and broader Middle East energy routes have intensified fears of an oil shock, pushing Brent crude prices above $110 per barrel. Oil prices have gained more than 25 percent since the beginning of the month.
Higher crude prices typically raise inflation expectations in India, which imports a large share of its energy requirements. The surge in energy costs increases risks to the current account balance and could lead to higher domestic inflation, prompting bond investors to demand higher yields.
Market participants also indicated that the Reserve Bank of India had intervened in the secondary bond market earlier to prevent yields from moving sharply above the 6.7 percent level. According to treasury market participants, central bank purchases helped cap yields during the previous trading sessions despite global volatility.
The central bank had earlier announced government bond purchases worth ₹50,000 crore in two tranches scheduled for March 9 and March 13 to inject liquidity into the financial system. Such open market operations are aimed at stabilising bond markets and ensuring orderly movement in yields during periods of external volatility.
Currency markets also reflected the pressure from higher oil prices. The rupee weakened by about 47 paise to around ₹92.21 against the US dollar in early trade, approaching its recent record low levels. Investors will now monitor crude price trends, geopolitical developments, and central bank liquidity operations for cues on the trajectory of bond yields.
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