US bond yields are rising, and India is feeling the heat, just like most other global markets. The US bond yield surged to a 19-year high above 5% recently. Motilal Oswal believes the rise in global yields will keep Indian borrowing costs elevated and limit the scope for a significant decline in domestic bond yields. The brokerage firm also said that, along with US bond yields, India’s economy is facing risks from elevated crude oil prices. expects the Reserve Bank of India (RBI) to raise interest rates by 75-100 basis points in the current cycle if crude oil prices remain elevated and inflation expectations rise. All eyes are on the upcoming RBI Policy meeting next month.