India bonds slide as Brent jumps and US yields spike
Indian government bonds took a hit on Tuesday, mostly because oil prices jumped and US bond yields spiked, both of which can make inflation worse.
The main 2036 bond yield edged up to 6.7907%.
Brent crude had risen 5% on Monday to $87.70 a barrel and was up slightly in Asian trade on Tuesday after the US rejected a peace proposal from Iran, adding to supply worries.
US yields curb Indian debt appetite
Rising US Treasury yields are making investors less interested in emerging-market debt like India's.
Everyone's now watching for new inflation numbers from both the US and India, since these could affect interest rate decisions soon.
Meanwhile, Indian states are testing the waters by selling 15,300 crore rupees in bonds today, so all eyes are on how markets react in this unpredictable moment.