India’s 10-year bond yield rises to 3-week high as oil prices surge, GDP data in focus

India’s benchmark 10-year bond yield touched a three-week high in early trade on Tuesday, as global crude oil prices rose further raising concerns over the need for the central bank to tighten monetary policy aggressively to contain inflation.

The benchmark bond yield was trading at 7.46 per cent by 0606 GMT, its highest since May 9.

Oil prices extended gains after the EU agreed to slash oil imports from Russia, fuelling worries of a tighter market already strained for supplies amid rising demand ahead of peak US and European summer driving season.