MUMBAI: India's benchmark 10-year bond yield rose to its highest levels since March 2019 in early trade on Monday as investors prepared for around a 50-basis-point rate increase later this week while higher global crude oil prices also hurt sentiment.
India's benchmark 10-year bond yield was trading at 7.4965%, up 4 basis points from its previous close. Yield rose as high as 7.5004%, its highest since March 22, 2019.
The Reserve Bank of India will concentrate interest rate hikes over the coming months in a relatively short tightening cycle, according to a Reuters poll of economists who expect the repo rate to reach its terminal level early next year.
Oil prices rose more than $2 in early trade on Monday after Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate its output increases over the next two months.
(Reporting by Swati Bhat Editing by Shri Navaratnam)