India bonds join global rout after Mideast escalation jolts oil higher

Indian government bonds declined and the rupee weakened after a Middle East escalation pushed Brent crude up 9.6% overnight, its biggest jump in over six years, to $84.84 per barrel. The benchmark 10-year bond yield climbed 6 basis points to 6.7864%, while the rupee dropped 0.54% to 96.14 per dollar as foreign investors turned net sellers of Indian debt for the first time since June policy measures. With India importing around 90% of its oil, the crude surge threatens to worsen inflation, already at 4.38% in June, and lift rate-hike expectations across Indian swap rates.