Economy News

India's benchmark 10 year bond yield rallied to its highest level since April 2020 on Monday, 18 October 2021 amid a surge in global crude oil prices. The yield on the 10-year government bonds in India has been on an upward trend since late September. The benchmark 10-year bond yield was trading at 6.38%, up 5 basis points from its previous close and at its highest since April 17, 2020. Yields on the 10 year benchmark 6.10 GS 2031 ended at 6.328% on Thursday. Markets were closed on Friday for a religious festival. The key Indian bond yield is climbing as oil prices hit their highest level in years on Monday and India imports 80% of its oil needs and high prices are likely to translate into higher domestic inflation, which could force the central bank to act on rates or reduce the liquidity stimulus sooner rather than later. During its October monetary policy meeting, the Reserve Bank of India suspended its buying under its government securities acquisition programme.

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