India 2023 Bond Yield at This Month’s High on Inflation Concern

India’s 10-year government bonds fell, with the yield climbing to the highest level this month, on concern below-normal rainfall and rising global oil prices will fuel inflation, reducing scope for monetary easing.

The monsoon, which accounts for more than 70 percent of the nation’s annual rainfall, has been 49 percent lower than the 50-year average since June 1, the weather department said on its website yesterday. The rupee dropped for a third day in four, adding to concern that a spike in crude as a result of the Iraq conflict will spur inflation in India, which imports about 80 percent of its fuel. India’s six-month borrowing costs rose at an auction of treasury bills today.