India’s 10-year G-Sec yield rose 3 basis points to 7.2133% on Thursday, its highest level since April 2024, as global yields climbed and markets anticipated an interest-rate increase by the Reserve Bank of India on October 7. The benchmark yield gained nearly 10 basis points during the week, its largest weekly increase since mid-August. The 10-year US Treasury yield briefly reached 5.30%, described in the latest account as a 24-year peak, narrowing the spread between US and Indian benchmark yields to its tightest level in more than a year. Inflation has accelerated while domestic monetary conditions remain relatively loose because of excess liquidity linked partly to policy-driven foreign-exchange flows. The RBI is expected to raise rates for the first time in nearly four years. Bond prices have also faced pressure from increased long-term government issuance, while the central bank conducted its largest open-market bond sale in a decade to reduce a record cash surplus. Earlier market context included expectations of nearly 100 basis points of RBI tightening over 12 months, a one-year overnight indexed swap rate of 6.21%, record $133 billion FCNR(B) inflows and government borrowing of nearly INR 8 trillion through March. India’s debt market will close on Friday for a local holiday.