Indian Bonds Drop as West Asia Tensions Spike Oil Prices, Hit Investor Sentiment

• Indian bonds fell 2 basis points on March 2 due to escalating geopolitical tensions in West Asia.
• Oil prices surged beyond $75 per barrel, impacting global investor sentiment.
• The benchmark 10-year bond yield rose to 6.6833% from 6.6601% in the previous session.
• US and Israel's joint attack on Iran, killing Ayatollah Ali Khamenei, led to Iran's retaliation, heightening global market stakes.
• Analysts warn that higher crude prices increase inflation risk, pushing bond yields up and compressing equity multiples.