Bond Yields Rise As Crude Surge, Geopolitical Tensions Trigger Caution In Markets

India’s bond market is witnessing rising volatility as geopolitical tensions and surging crude prices push yields higher. Recent reports suggest that state-backed financiers REC Limited and NABARD have withdrawn bond sales worth nearly ₹19,000 crore after investors demanded higher yields amid growing risk concerns. The benchmark 10-year government bond yield has climbed to around 6.68–6.69%, reflecting pressure from rising oil prices, currency weakness and inflation fears. Analysts say volatility in global energy markets is raising expectations of imported inflation, which could limit the scope for interest rate cuts by the Reserve Bank of India. As a result, investors remain cautious, with bond markets reacting sharply to geopolitical developments and macroeconomic uncertainty.