India Bond Yield Rises as Oil Prices Soar Ahead of Fed Meeting

The yield on India's 10-year G-Sec rose to around 6.79% as investors turned cautious ahead of the Federal Reserve's policy meeting and rising oil prices weighed on sentiment.

Markets assigned a 65% probability to the Fed holding interest rates steady, with traders closely watching Chair Kevin Warsh's guidance on the policy outlook.

The rise in India's 10-year yield came as Brent crude climbed 4.7% to around $87.68 per barrel after US and Saudi forces launched strikes on Iran-backed groups in Iraq, reviving concerns over the Middle East conflict and its inflationary impact.