India’s 10-year bonds fell, snapping a three-day advance, on concern rising oil prices will spur inflation. Crude has rebounded 0.5 percent this week, following a decline of more than 6 percent last week, according to data compiled by Bloomberg. Domestic gasoline prices were last increased by state-owned companies on May 15. India imports almost 80 percent of its oil. Yields at the lowest level in six weeks are also deterring investors, said A.Y. Shedshale, a Mumbai-based deputy general manager at Bank of Maharashtra. “The firming up of oil prices has brought back inflation worries,” he said. “More fuel price rises could be in the offing.” The yield on the 7.8 percent note due April 2021 rose three basis points, or 0.03 percentage point, to 8.22 percent as of 10:06 a.m. in Mumbai, according to the central bank’s trading system. The rate reached 8.19 percent yesterday, the lowest level since May 6. The wholesale-price index rose 9.06 percent in May from a year earlier, compared with 8.66 percent in April, official data showed on June 14. To contact the reporter on this story: V. Ramakrishnan in Mumbai at rvenkatarama@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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