Crude oil and U.S. Treasury yields rise; Indian 10-year government bond yield rebounds to 7.1%

⑴ The yield on India's 10-year government bonds is hovering around 7.1%, rebounding from recent declines due to rising oil prices and higher US Treasury yields, which continue to dampen sentiment in the bond market. ⑵ Brent crude futures have risen above $107 per barrel, as renewed geopolitical tensions in the Middle East spark concerns about potential supply disruptions and sustained inflation risks. ⑶ Meanwhile, the yield on US 10-year Treasury bonds has climbed to its highest level in nearly a year, reinforcing market expectations that the Federal Reserve may keep interest rates elevated for a longer period. ⑷ Additionally, India's central bank has boosted liquidity in the sovereign debt market by raising the annual trading targets for primary dealers. Under the revised framework, the country's 21 bond market makers are required to trade a larger volume of government bonds in the current fiscal year, significantly increasing activity in benchmark 10-year bonds.