Indian government bonds are set to decline on Thursday (March 12, 2026), tracking a spike in crude oil prices and U.S. Treasury yields, while the benchmark bond ‌could see some selling pressure after the central bank did not include the note in its debt ⁠purchase programme.

The benchmark 6.48% 2035 bond yield will likely hover between 6.63% and 6.69%, a private bank trader said. The yield had ‌ended at 6.6366% on Wednesday (March 11, 2026). Bond yields move inversely to prices.

Directionally, bonds should head down, as ‌all indicators favour the bears. Having said that, the ‌central ⁠bank is expected to make its presence felt ⁠in the secondary market, like the last hour of the session yesterday,” the trader said.

An investor category that consists of the Reserve Bank of India, along with other ‌long-term investors, net bought bonds worth ₹53 billion on Wednesday (March 11, 2026), data showed.

Traders estimate a bulk of these purchases would be from the RBI in the benchmark ‌paper, which aided a swift decline in yields.

Oil prices jumped again after staying steady for the last couple of sessions, with the benchmark Brent ⁠Crude contract nearing $100 per barrel after Iraqi security officials said Iranian explosive-laden boats had hit two fuel oil tankers amid other global ‌supply disruptions from the U.S.-Israeli war on Iran. — Reuters

Following a communication from the oil marketing companies on Monday (March 9, 2026) that LPG cylinder supply will be affected because of the U.S.- Israel war on Iran, hotels in Coimbatore district have decided to cut down on service timings and menus. Hotels and retirement communities are exploring alternative sources of fuel.

The Sree Annapoorna Sree Gowrishankar Group put out a notice on Monday night informing customers that it would limit its menu to essential items and some items would be available only at specific hours of the day. 

K.A. Ramaswamy, president of the Coimbatore District Hoteliers Association, said the oil marketing companies stopped the supply of commercial LPG cylinders from Tuesday (March 10). “We are managing with the cylinders that we have. We have cut down on Chinese items at the live counters, removed parottas from the menu, and restricted dosa and puri items to peak hours,” he said.

The 262 hotels that are members of the association will be able to manage for a couple of days and may start shutting down operations thereafter. “There are thousands of smaller hotels in the district. No one operating in the city limits uses firewood because of inspections and safety norms. They will be the worst-hit,” he said. 

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