Bond yields jump, rupee weakens as oil surges after Trump says Iran deal is over

Indian government bond yields surged about 7 basis points to 6.76 percent and the rupee weakened 0.6 percent to 95.56 against the dollar after US President Trump declared the Iran memorandum of understanding was over. Brent crude oil futures rose over 2 percent to 78 dollars per barrel following fresh US strikes on Iran and the revocation of waivers for Iranian oil exports, reigniting fears of prolonged West Asia tensions. Traders cited rising oil prices, a stronger dollar index above 101, and concerns over India's current account deficit and inflation as the main drivers behind the sell-off in domestic debt and currency markets, with likely RBI intervention limiting the rupee's fall.