The benchmark 10-year government bond yield rose to 7.1848 per cent, its highest closing level since April 2024, as surging oil prices and a sell-off in US debt rattled Indian bond markets.

Bond prices fell sharply after the government released its October-March borrowing calendar, with traders bracing for up to Rs 1 trillion in additional open-market bond sales in October.

Sentiment was further hit by Brent crude holding above $100 a barrel and the US 10-year Treasury yield climbing past 5.20 per cent, which narrowed the appeal of Indian debt for foreign investors.

Rising yields raise borrowing costs across the economy, from home loans to corporate debt, and put pressure on the government’s interest bill.

Dealers said the market would take its cues from crude oil and global yields this week, with the Reserve Bank’s stance on liquidity also in focus.

The October-March borrowing calendar is keenly watched because the government raises a large share of its annual borrowings in the second half of the fiscal year. Higher yields also make it costlier for states and companies to borrow, potentially slowing investment.