On Thursday, the 10-year benchmark government bond yield in India crossed the 7% threshold, closing at 7.01%, an increase from 6.99% the previous day. This rise in yields follows a significant increase in crude oil prices, which reached their highest point in four years, contributing to inflationary pressures. During the trading session, the yield peaked at 7.06% before settling lower as oil prices eased later in the day. The increase in yields is compounded by hawkish comments from the U.S. Federal Reserve, which have raised expectations for tighter global financial conditions. Additionally, money market rates have surged, with the weighted average call rate rising to 5.07%, up from 5.00% a week earlier. The firming of yields is occurring alongside a decrease in banking liquidity surplus, further complicating the financial landscape for traders.