{
  "id": 10569705,
  "title": "Ten-year bond yield hits 7.19%, highest in two years",
  "url": "https://urgent.news/2026/09/29/ten-year-bond-yield-hits-7-19-highest-in-two-years",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-29T00:09:52.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/bonds/ten-year-bond-yield-hits-7-19-highest-in-two-years/articleshow/134553130.cms"
  },
  "original_language": "en",
  "account": "Mumbai witnessed a significant surge in the yield of the 10-year government bond on Monday, reaching a record high of 7.19% – a level last seen in April 2024. This spike in yields, despite a decrease in overall central government borrowing during the second half of fiscal year 2027, is attributed to rising oil prices fueling inflation concerns and an increase in global yields. Dealers are predicting the yield could climb further, potentially reaching 7.25% or even 7.50% if oil prices remain elevated. The shift in yields is being influenced by a mix of liquidity withdrawal, additional bond supply, higher global yields, and an uncertain inflation outlook. Prashant Pimple, CIO of Fixed Income at Baroda BNP Mutual Fund, advises against chasing duration due to current yield levels. Brent crude oil prices jumped by $2.98 to $107.30, while US 10-year yields hit a two-decade high of 5.23%. The government's borrowing calendar for the second half of the fiscal year showed a reduction in 10-year bonds and an increase in longer-term papers, with total borrowing estimated at ₹16 lakh crore, lower than the budgeted ₹17.2 lakh crore. The market seems to have disregarded the issuance calendar, focusing instead on oil prices. Traders are likely to face losses on bonds purchased over the past two years as yields have risen from their purchase levels. The Reserve Bank of India conducted an open market operation sale of ₹25,000 crore, with banks offering ₹67,655 crores. Liquidity in the banking system has dropped from ₹11 lakh crore to ₹4.39 lakh crore, and a variable rate reverse repo auction of ₹2 lakh crore is scheduled for Tuesday.",
  "summary": "Yields on the 10-year benchmark government bond have increased to their highest level since April 2024. The rise in yields follows a surge in oil prices and higher global yields. The Reserve Bank of India is taking measures to manage liquidity in the banking system with open market operations. Traders are experiencing losses due to rising yields impacting previously purchased bonds.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}