Indian 10-year bond yield tops 7% on global debt rout, oil rally

India's benchmark 10-year government bond yield breached 7% intraday, settling around 6.99%, driven by a global debt selloff and a Brent crude rally past $95 per barrel amid escalating US-Iran tensions and a shut Strait of Hormuz. US 10-year Treasury yields hit 4.81%, the highest since November 2023, while Japan's 10-year touched 3% for the first time since 1996, squeezing EM debt appeal and risking FII outflows. HSBC now expects two 25 basis point RBI rate hikes in FY27 taking repo to 5.75%, with Fed hike odds for this month jumping to 68% from 41% a week ago.