India's 10-year government bond yield rises to 6.91%, hitting a two-month high

⑴ The yield on India's 10-year government bonds has risen to around 6.91%, reaching a more than two-month high, driven by bond supply pressure and renewed expectations of interest rate hikes. The yield on the benchmark 6.94% 2036 government bond climbed nearly 2 basis points during the day, marking the highest level since June 18. This benchmark bond is about to undergo a 340 billion Indian rupee (approximately $3.56 billion) auction.⑵ The minutes of the Reserve Bank of India's August meeting were hawkish, reigniting expectations of a possible rate hike later this year and increasing upward pressure on yields. Investors are also closely watching the speech by the Federal Reserve Chair at Jackson Hole. Brent crude oil prices fell by 5% on expectations that the Strait of Hormuz will reopen, easing inflation concerns and somewhat limiting the rise in yields.