MUMBAI: India’s benchmark 10-year bond yield rose to its highest levels since March 2019 in early trade on Monday as investors prepared for around a 50-basis-point rate increase later this week while higher global crude oil prices also hurt sentiment.

India’s benchmark 10-year bond yield was trading at 7.4965%, up 4 basis points from its previous close.

Yield rose as high as 7.5004%, its highest since March 22, 2019.

The Reserve Bank of India will concentrate interest rate hikes over the coming months in a relatively short tightening cycle, according to a Reuters poll of economists who expect the repo rate to reach its terminal level early next year.

India central bank governor says priority is inflation, but growth important

Oil prices rose more than $2 in early trade on Monday after Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate its output increases over the next two months.