The yield on India’s 10-year G-Sec hovered around 6.95%, easing from near three-month highs as traders weighed elevated oil prices against the Reserve Bank of India’s liquidity-management measures. The RBI has announced several reverse repo operations to absorb excess liquidity after the banking system’s surplus hit a record high, signalling its intent to prevent loose monetary conditions from fuelling inflation and putting upward pressure on yields. The central bank is set to conduct a INR 5 trillion overnight variable-rate reverse repo auction on Tuesday, following the withdrawal of INR 2.59 trillion through a 30-day operation a day earlier. However, elevated Brent crude above $97 a barrel remained a key upside risk for yields, as India imports nearly 85% of its crude needs, raising concerns over inflation and government finances. The RBI’s cautious policy stance, including signals that rate hikes could be approaching, also kept yields elevated.