India's 10-year government bond yield rises to around 6.83% as U.S.-Iran tensions drive up oil prices and weigh on the bond market

(1) The yield on India's 10-year government bonds rose to around 6.83%, nearing a four-week high, as escalating tensions between the US and Iran pushed up oil prices and weakened demand for sovereign debt. Last weekend, the US carried out its eighth consecutive nightly strike against Iran, with both sides intensifying military actions following the breakdown of a temporary ceasefire. (2) The conflict led to disruptions in the Strait of Hormuz, with Brent crude rising above $90 per barrel, heightening concerns among major oil importers like India over supply interruptions and imported inflation. Meanwhile, investors remain cautious ahead of a decision on whether Indian government bonds might be included in the Bloomberg Global Aggregate Index.