India's 10-year G-Sec rose to around 6.78% on Friday, trimming part of this week's decline as a sharp recovery in oil prices reduced demand for government bonds ahead of New Delhi's INR 320 billion debt auction. Investors watched the sale of five-year and 40-year securities closely for signs of demand, especially in longer-dated paper. Brent crude climbed to about $83.7 a barrel, up nearly 6%, on renewed worries about shipping through the Strait of Hormuz, adding pressure on India's import bill, inflation and the rupee. Higher oil prices also lifted the US 10-year Treasury yield to 4.68%, which made emerging-market debt less attractive. Even so, expectations that the Reserve Bank of India would keep banking system liquidity ample after its dovish policy decision and lower inflation forecast continued to support sentiment, while reports of RBI intervention in the foreign exchange market helped ease pressure on the rupee.