New Delhi, April 1 -- India's financial markets are undergoing a significant shift in trading dynamics amid escalating global war-related risks, with the rupee breaching key levels and bond yields hardening, according to a report by Union Bank of India (UBI).

The report noted that the last trading session of FY26 marked a "regime shift" across currency and rates markets, with the rupee breaching the Rs 95 per dollar mark for the first time and the 10-year government bond yield moving above the 7 per cent threshold.

On an annual basis, the rupee depreciated nearly 10 per cent in FY26, while the benchmark bond yield rose by 45 basis points despite a 100 basis point rate cut by the Monetary Policy Committee during April-December 2025, indi...