Yields of Government Securities (G-Secs) spiked on Monday, tracking rising US Treasury yields, inflation concerns emanating from surging crude oil prices, and expectations of a rate hike by the RBI’s rate setting at its upcoming meeting.

Yield of the benchmark 10-year G-Sec (6.94 per cent GS 2026) closed at 7.19 per cent, a level last seem in April 2024, against the previous close of 7.12 per cent.

Arvind K,  Executive Vice President - Head of Integrated Treasury, Tamilnad Mercantile Bank, noted that benchmark 10-year paper’s yield has hardened by about 26 basis points in September 2026 so far.

Given the confluence of factors such as hardening US Treasury yields (with the 10-year bond yield rising to about 5.25 per cent), crude oil prices shooting up to $106 a barrel (leading to concerns about price pressures in the economy) and possibility of a rate hike by the monetary policy committee, he sees yield of the Indian 10-year benchmark paper testing the previous top of 7.61 per cent (hit in June 2022) in the next month or so.

Published on September 28, 2026