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India's Benchmark 10-Year Bond Yield Climbs to Three-Year High of 7.391%
India's benchmark 10-year government bond yield rose to an intraday peak of 7.391%, reaching its highest level in about three years. The increase occurred after the Reserve Bank of India raised its repo rate by 25 basis points to 5.50% on October 7. Inflation concerns escalated after September consumer price index data surged to 5.54%, while food inflation reached 7.74%. Additionally, Brent crude oil traded around $107 per barrel, increasing import expenses for India, which imports approximately 90% of its crude oil. The central bank shifted its policy stance from neutral to calibrated tightening, indicating potential future rate increases. Simultaneously, the US 10-year Treasury yield surpassed 5.25%, adding further pressure to global equity markets. These macro pressures contributed to the Nifty 50 declining nearly 15% to reach a 52-week low of around 22,180.