Indian bond yields rise as West Asia tensions escalate
Business
Tensions in West Asia have pushed Indian bond yields higher, with the 10-year yield rising to 6.68%.
The move was attributed to geopolitical tensions that pushed oil prices higher; bond yields and prices move inversely, and JM Financial linked higher crude to an inflation risk that can push yields up.
Oil prices spiked after US airstrike killed Iran's Khamenei
The surge follows a US-Israel military strike in Iran that killed Supreme Leader Ayatollah Ali Khamenei, triggering retaliatory attacks and sending oil prices on a rollercoaster—briefly hitting $82 a barrel before settling at $76.
Since India relies on the Strait of Hormuz for about 40% of its oil imports, traders are keeping a close eye on how this crisis could impact inflation and investment strategies back home.