India bond yields rose in October 2026 as government bonds recorded a fourth consecutive monthly decline, with higher oil prices adding to inflation concerns and the central bank tightening policy.

India bond yields end a volatile month higher

The yield on the benchmark 6.94% bond maturing in 2036 rose 2.5 basis points to 7.4139% on October 30, taking its increase for the month to 22.5 basis points. Bond prices and yields move in opposite directions.

The RBI’s guide to dated government securities explains that a fixed-coupon bond’s name identifies its coupon, issuer and maturity year.

The benchmark yield nevertheless fell about 6 basis points over the week, after climbing more than 70 basis points during the previous 10 weeks. Investors bought bonds after the yield twice approached 7.50% without crossing it.

Oil and tighter policy weigh on debt

Brent crude reached $117.55 a barrel intraday on October 30, its highest level since April 30, and was poised for a fourth monthly advance. It was up nearly 14% in October, adding to inflation concerns for India, a major oil importer.

Earlier in October, the Reserve Bank of India raised its policy rate to 5.50%, its first increase in nearly four years, and adopted a calibrated tightening stance. Foreign exposure to index-eligible Indian bonds also fell to a more than four-month low.

Short-term overnight indexed swap rates rose during October: the one-year rate increased 51 basis points to 6.72%, while the two-year rate climbed 33 basis points to 6.74%.

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