Indian government bond yields continued their prolonged decline for the tenth consecutive week, marking the longest losing streak in three decades amid rising crude oil prices and higher US bond yields, reported Business Standard.

The benchmark 10-year government bond yield closed at 7.47% on Friday (October 23), up from 7.46% in the previous session. The benchmark 6.94% 2036 bond ended the day at 7.4740%, compared with 7.4596% a day earlier, reported Reuters.

Yields climbed by nine basis points during the week, extending a rally in yields that has added 62 basis points over the preceding nine weeks. The cumulative increase marks the steepest rise since 1998. Bond yields and prices move in opposite directions, meaning the sustained rise in yields reflects a prolonged decline in bond prices.

Pressure on the bond market has intensified amid escalating geopolitical tensions and concerns over further disruptions to global energy supplies.

Benchmark Brent crude prices remained around $115 a barrel, their highest level in nearly six months, raising concerns about inflationary pressures and their potential impact on the domestic economy.

Meanwhile, foreign portfolio investors (FPIs) have also reduced their exposure to Indian government debt. By the end of September, they had sold government bonds worth Rs 987 crore this year, adding to the challenges facing the bond market.