Oil shock, Treasury yield spike put Indian bonds under pressure before debt sale

Indian government bonds came under pressure as Brent crude surged above $100 per barrel for the first time since May after Houthi attacks on Saudi tankers, and US 10-year Treasury yields hit 4.70%, their highest since January 2025, on expectations of a Federal Reserve rate hike. The benchmark 6.94% 2036 bond yield rose to 6.8571%, a five-week high, while the new 15-year paper for Fridays 280 billion rupee auction traded at 7.05% in the when-issued segment. OIS rates also climbed, with the one-year at 6.05% and the five-year at 6.57%, reflecting renewed inflation concerns from the oil shock.