India's Bond Yield Surges on Rising Rate Hike Bets and Elevated Oil Prices

India's 10-year bond yield rose to its highest since June 8 after seeing its biggest monthly increase in FY27, reaching 6.9452% on Monday.

The rise was attributed to elevated oil prices and hawkish signals from the RBI, which were reinforced by the Federal Reserve.

With Brent crude staying above $90 a barrel, a sustained rise could worsen India's inflation outlook and impact government finances.

RBI policymakers remain prepared to raise interest rates if upside inflation risks materialize, according to minutes of their August meeting.