The yield on India’s 10-year G-Sec hovered near 6.87%, steadying after reaching two-month highs as fresh debt supply, elevated oil prices, and cautious RBI policy signals kept yields elevated. The benchmark 2036 bond yield closed at 6.8709% on Thursday, its highest closing level in more than two months, ahead of the government’s INR 280 billion weekly bond auction, with more than half of the borrowing through 15-year paper. Meanwhile, Brent crude hovered around $94 per barrel, raising concerns over inflation and government finances. RBI minutes showed policymakers were more prepared to raise rates if inflation risks materialize, while July retail inflation accelerated to 4.45%, above the RBI’s 4% medium-term target. Strong demand for HDFC Bank’s $1.75 billion dollar bond sale, which attracted around $7 billion in orders, highlighted banks’ efforts to tap the RBI’s concessional funding window ahead of the August 31 deadline, providing little relief to government bond yields.