Fuel excise duty cut sparks sharp 10 year bond yield jump and rattles Bond Street investors

Cut fuel duty, but yields surged fastest in two years

India’s 10-year government bond yield jumped sharply on Friday, with the biggest weekly rise since May 2022. The move followed a cut in fuel excise duty that worsened the fiscal outlook, alongside heavy state bond sales and higher oil prices. Investors now face renewed uncertainty over borrowing costs and policy direction.