RIYADH: Indian government bond yields ended higher for a fifth consecutive session on Wednesday, as crude at $100 raised fears inflation may stay elevated.
The benchmark 10-year government bond yield ended at 7.28 percent. The yield has added 10 basis points in the last four sessions.
The new 10-year 7.26 percent 2032 bond yield ended at 7.27percent.
Indian rupee edges up
The Indian rupee made marginal gains on Wednesday, despite a jump in crude prices, as exporters sold dollars after the US currency pulled back from a recent high overnight.
The partially convertible rupee closed up 0.1 percent to 79.8 after trading near the same level all day, shaking off the threat from oil prices climbing back to $100 per barrel.
Russia-backed Indian refiner
Many global oil traders and banks have stopped dealing with Indian refiner Nayara Energy, a Rosneft affiliate, as they are worried about Western sanctions over Russia’s invasion of Ukraine, Reuters reported citing two people with knowledge of the matter.
Nayara has not been sanctioned as part of the international response to what Russia calls its “special military action” against Ukraine but sanctions are in place against Rosneft.
The Russian energy giant owns about 49 percent of Nayara, which is India’s second-largest private refiner, while Kesani Enterprises Co. Ltd., a consortium led by Trafigura Group and Russia’s UCP Investment Group, holds 49.13 percent.
Most trading firms including Vitol and Glencore as well as producers in Canada, Latin America and Europe have declined to directly sell crude to Nayara, according to one of the people.
(With input from Reuters)