At the end of April, Indian government bond yields remained largely unchanged, with the benchmark 6.48% 2035 government bond yield closing at 7.0148%, slightly up from 6.9928% in the previous session. The rise in yields was driven by a significant increase in global crude oil prices, which surged above $126 per barrel, raising concerns about inflation and widening the fiscal deficit for India, a net energy importer. The Reserve Bank of India (RBI) maintained a dovish stance, keeping policy rates steady, which helped anchor market sentiment despite external pressures. Analysts observed that ongoing geopolitical tensions, particularly related to the Strait of Hormuz, could sustain elevated oil prices, further impacting bond yields. As a result, market participants are advised to consider short-duration corporate bonds to navigate the rising yield environment. The Indian rupee also faced challenges, reaching a record low during the month, exacerbating the economic outlook.