# India bonds drop as oil prices spike rate hike fears

> India's bond yields rise as oil prices surge, fueling rate hike worries.
- Title: India bonds drop as oil prices spike rate hike fears
- Summary: India's bond yields rise as oil prices surge, fueling rate hike worries. India's 10-year bond yield climbed for nine weeks, raising fears of a 50 bps rate…
- Keywords: india bonds, oil prices, rate hike fears, reserve bank of india, brent crude, inflation, money, business, India, bonds, drop, oil
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/bonds/india-bonds-india-bonds-give-up-days-gains-as-oil-price-spike-adds-to-rate-hike-fears/articleshow/135048949.cms
- Author: Reuters
- Published: 2026-10-19T12:30:00+00:00
- Read time: 1 min
- Topics: india bonds, oil prices, rate hike fears, reserve bank of india, brent crude, inflation, money, business
## India bonds give up gains
Indian government bonds ended lower as oil prices spiked and inflation fears rose.
## Benchmark bond yield drops
The benchmark 6.94% 2036 bond yield closed at 7.3920% after falling from 7.3789% the previous session.
## Oil prices spike
Brent crude hit $108 per barrel after rising to $110 on Friday, the highest since May.
## Inflation concerns rise
India's September inflation accelerated to 5.54% and is expected to cross 6% in October.
## RBI rate hike fears
Economists predict consumer inflation might exceed the RBI's upper tolerance band, prompting a 50 bps rate hike.
## RBI's next move
Puneet Pal, head of fixed income at PGIM India Mutual Fund, expects a 50 bps rate hike by the RBI.
## Key takeaway

India's 10-year bond yield climbed for nine weeks, raising fears of a 50 bps rate hike by the RBI.