Why your home loan might get costlier soon
India's 10-year government bond yield just jumped to 6.76%, even after the Reserve Bank of India (RBI) announced OMO purchases worth ₹1 trillion to be conducted starting this week to steady things.
Why? Global oil prices are soaring and the rupee is slipping, making imports pricier and pushing up everyday costs like LPG, which rose by ₹60 over the weekend.
How does this affect you?
When bond yields rise, borrowing (think home or education loans) gets more expensive.
Plus, with oil briefly spiking to near $120 a barrel before trading around $110 thanks to global tensions and supply cuts, inflation could hit harder in your daily life.
What to expect next?
Experts say yields might climb further this month due to tax season pressures and ongoing rupee weakness.
Even with the RBI trying to help, big market forces are keeping borrowing costs on the rise.