India 10-year yield ticks up as oil tops $80
India's 10-year bond yield ticked up on Friday, snapping a six-day drop.
This move came after U.S.-Iran peace talks stalled, sending global oil prices above $80 a barrel.
Since India imports most of its oil, pricier crude fuels worries about rising inflation and puts investors on edge.
Some traders also cashed in profits after the recent bond rally.
El Nino raises Indian inflation worries
The 2036 government bond yield ended at 6.8533%, slightly higher for the day but still down overall this week.
Traders are keeping an eye on inflation risks, especially with forecasts of weaker monsoon rains due to El Nino: rainfall is expected to be just 90% of normal this year.
Meanwhile, short- and long-term borrowing rates have crept up too, reflecting ongoing concerns about where inflation and interest rates might head next.