Rising oil and Mideast tensions push Indian bond yields up

Business Apr 24, 2026

Indian government bonds have slipped for the third straight day, thanks to rising oil prices fueled by ongoing Mideast tensions.
The benchmark bond yield nudged up to 6.98%, showing that investors are feeling cautious, especially with a big ₹320 billion bond auction happening today.

Pricier crude raises India's import burden

Since India buys almost all its oil from abroad, pricier crude means a bigger import bill and more pressure on the economy.
Traders expect these higher costs to stick around, as seen in rising swap rates.
Plus, unresolved U.S.-Iran tensions are making markets even more jittery, adding another headache for India as it tries to manage both global drama and its own finances.