In this edition of Bond Compass, we highlight the key themes for Sep/Mid Oct: • The 10Y benchmark IGB yield hardened sharply during September 2026, rising from around 6.91% at the start of the month to 7.21% by end-September, driven by a sustained surge in Brent crude prices, higher US Treasury yields, escalating Middle East tensions, RBI's liquidity tightening measures including OMO sales, and a weaker INR. • Brent crude surged from around $94/bbl in Aug to above $105/bbl during September 2026, driven by escalating Middle East tensions, attacks on Saudi energy infrastructure, and disruptions to oil flows through the Strait of Hormuz.
