Indian government bonds posted their first monthly loss in four months in July, snapping a streak of gains as investors retreated from emerging-market debt.
The sell-off was driven by a combination of surging crude oil prices and rising US Treasury yields, which together pressured valuations across the sector.
8343%, reflecting the dual headwind of energy inflation fears and tighter global liquidity conditions.
The benchmark 6.94% 2036 bond ended the month with a yield of 6.8343%, reflecting the dual headwind of energy inflation fears and tighter global liquidity conditions.
The move marks a reversal of sentiment that had supported Indian sovereign debt through the spring and early summer.
Reuters reported that the deterioration of a US-Iran peace deal played a central role in the repricing, as renewed geopolitical uncertainty in the Middle East fueled oil markets.
Higher energy costs threaten to widen India’s trade deficit and complicate the Reserve Bank of India’s inflation outlook, adding a layer of fundamental risk to the technical sell-off.