India 10-year government bond yield at 7.19% since April 2024
Business
India's 10-year government bond yield just climbed to 7.19%, a level not seen since April 2024.
This spike is mostly thanks to rising US Treasury yields, surging crude oil prices, and expectations of an RBI rate hike, both making borrowing costlier and raising inflation worries.
RBI meeting could push yields higher
With the Reserve Bank of India's meeting coming up, everyone's watching for a possible rate hike that could push yields even higher.
Arvind K, Executive Vice President - Head of Integrated Treasury, pointed out that the yield jumped by 26 basis points just this month, and it might even test highs last seen in June 2022 if these trends continue.