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Bond yields have been on an upward trajectory for the better part of the year. Yields on the paper has hardened 40 basis points in the last month alone and by 85 basis points since January 1, 2026, before the Iran-US tensions intensified. | Photo Credit: istock.com

The benchmark 10-year G-Sec (6.94% 2036) hit a more than three year high of 7.44% as brent crude futures touched $110 a barrel as outlook on West Asia turns uncertain again.

The economy’s benchmark 10-year bond yields last hit 7.44% in March 10, 2023, when consumer prices (CPI inflation) increased at a rate of 5.66%.

Bond yields have been on an upward trajectory for the better part of the year. Yields on the paper has hardened 40 basis points in the last month alone and by 85 basis points since January 1, 2026, before the Iran-US tensions intensified.

The oil prices appreciated 1.74% to $110 a barrel in the past day. As of the trend in the past week, the oil prices have gone back to levels last seen in May 2026, when the uncertainties of a deal between US and Iran were uncertain and both the sides indulged in attacks. The rise to $110 a bbl has been relatively more gradual this time.

Treasury heads of banks had already seen the increase to 7.4% and said that bond yields may go as high as 7.5% at the current oil price levels, and that these levels have to dip an stay there sustainably for bond yields to ease.

The rupee-dollar pair too increased about 11 paise to ₹94.9.

Published on October 21, 2026

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