Indian government bonds extended their losing streak into a fourth consecutive session on Friday, weighed down by a dual headwind of surging oil prices and elevated US Treasury yields.
The benchmark 6.94% 2036 bond yield traded at 6.8571%, reflecting persistent selling pressure in the sovereign debt market.
The selloff comes at a critical juncture, with the Indian government preparing for an upcoming debt sale.
Investors are grappling with the combined impact of energy inflation risks and tighter global liquidity conditions, which have made emerging market assets less attractive.
The rise in oil prices, driven by geopolitical tensions, threatens to widen India’s trade deficit and increase fiscal burdens, while higher US yields draw capital away from frontier and emerging markets.
This development marks a continuation of the stress seen earlier in the week.