The yield on the Indian 10-year G-Sec rose toward 6.6% in August, hitting its highest level since March 27, as fiscal worries and muted demand weighed on sentiment. Traders noted that part of the pressure stemmed from growing concern over potential fiscal slippage following the government’s push to cut GST rates, raising doubts about revenue buoyancy. Additionally, weak foreign inflows and limited appetite for long-duration debt have kept yields elevated, with markets cautious ahead of key economic data. Upcoming June industrial output, the July fiscal deficit, and first-quarter GDP will be closely tracked for clarity on the growth-inflation-fiscal mix. Meanwhile, investors braced for steep US tariffs on Indian goods set to take effect Wednesday, as fading hopes of a Ukraine-Russia peace deal reinforced bets that the US will push ahead. India’s trade talks with Washington also face limits, as its Foreign Minister stressed that measures must safeguard farmers and small-scale producers.