India's benchmark 10-year bond yield rose to its highest levels in three years ahead of RBI policy announcement due tomorrow. Yield on benchmark 10-year bond 6.54GS 2032 rose to 7.53%, up 4 basis points from its previous close and the highest level since March 2019. The RBI is widely expected to sharply hike the rate again tomorrow after an off-cycle 40 basis point repo rate hike last month. Meanwhile, higher global crude oil prices influencing higher inflation also hurt sentiment. Crude oil is seen at $118.78 per barrel, not far from a 14-year high of $130 hit in March, amid tight global supplies. The benchmark hit a three-month high of $121.99 on Monday, after Saudi Arabia raised prices for its crude sales in July, indicating tight global supplies even after OPEC+ agreed to accelerate its output increases over the next two months.
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