Bond Yields Rise as Crude Crosses $100
Yields Edge Higher:
India’s benchmark 10-year bond yield rose to 7.05% on April 2, up from 7.03%, tracking global crude price surge.
Trigger: Trump’s Speech
Crude oil prices jumped after Donald Trump signalled escalation in the Iran conflict, raising concerns over prolonged geopolitical tensions.
Crude Above $100:
Brent crude climbed to around $106 per barrel, intensifying inflation worries and pressuring bond markets.
Why Yields Are Rising:
Higher oil prices increase inflation risk, leading to a sell-off in bonds and pushing yields upward amid weak demand.
Currency Movement:
The rupee strengthened to 93.53 per dollar after RBI steps to curb volatility, even as global uncertainties remain high.
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