India's government bonds hit as US yields and oil rise
Indian government bonds took a hit for the second day in a row, thanks to US Treasury yields climbing and crude oil prices shooting past $100 per barrel.
Brent crude spiked after a U.S.-Iran tanker incident near the Strait of Hormuz, sparking worries about supply.
For India, one of the world's biggest oil importers, expensive oil means higher import bills and more strain on government finances.
Rupee hits 95.16 per US dollar
Bond yields nudged up, and the rupee kept sliding, hitting 95.16 per US dollar for the fifth straight day. Still, a huge liquidity surplus in banks offered some relief.
Traders say the Reserve Bank of India (RBI) likely conducted near-maturity dollar-rupee sell-buy swaps to steady things.
Analysts think the RBI might raise its cash reserve ratio soon to manage liquidity better.
All eyes are now on upcoming inflation numbers and next week's US Federal Reserve policy decisions, which could shape where bond yields and the rupee go next.