India's 10-Year Government Bond Yield Surges to 3.5-Year High of 7.39%

India's government bond yields hit a three-and-a-half-year high of 7.39%, driven primarily by the central bank's strategy to minimize market liquidity. Over the past month alone, the yield on the 10-year benchmark bond surged by 38 basis points.

The sharp rise in yields reflects tightening liquidity conditions engineered by the Reserve Bank of India across the domestic financial system.