# India Bonds Drop as Oil Prices Press

> High oil prices push Indian government bonds lower, raising interest rate expectations.
- Title: India Bonds Drop as Oil Prices Press · The Economic Times
- Summary: High oil prices push Indian government bonds lower, raising interest rate expectations. Indian government bonds fell due to high oil prices and inflation…
- Keywords: india bonds, oil prices, reserve bank of india, inflation concerns, interest rates, bonds yield, rupee, money, business, India, Bonds, Drop
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/bonds/india-bonds-give-up-gains-as-high-oil-prices-weigh/articleshow/135211224.cms
- Author: Reuters
- Published: 2026-10-26T11:51:00+00:00
- Read time: 1 min
- Topics: india bonds, oil prices, reserve bank of india, inflation concerns, interest rates, bonds yield, rupee, money, business
## Indian government bonds end lower
Indian government bonds ended lower on Monday, giving up early gains as persistently high oil prices rattled sentiment and pressured the rupee.
## Rupee weakens for third day
The rupee weakened for a third straight day, falling 0.3% to 95.1850 per dollar.
## Bonds yield at 7.4826%
The 6.94% 2036 bond yield ended 1 basis point above Friday's close at 7.4826%.
## RBI raises inflation forecast
The Reserve Bank of India raised its inflation forecast, anticipating a peak of 6% in consumer prices.
## RBI expected to hike rates
India's central bank is expected to consider interest rate hikes to stabilize the currency amidst inflation concerns.
## Yes Bank expects 50 bps hikes
Yes Bank expects another 50 basis points of rate hikes, split into 25-basis-point moves in December and February.
## Key takeaway

Indian government bonds fell due to high oil prices and inflation concerns, with the Reserve Bank of India expected to hike interest rates.