New Delhi, April 14 -- The 10-year government securities yield climbed from 6.68% on 27 February 2026 - a day before the US-Iran conflict broke out - to 7.1% by 2 April, before easing slightly to 6.98% as of 13 April.

The spike has pushed long-duration debt mutual funds into negative territory, with the category down an average 1.11% since the war began.

Long-duration funds, classified by the Securities and Exchange Board of India (Sebi) as those with a Macaulay duration of more than seven years, are among the most interest rate-sensitive debt fund categories. When rates fall, bond prices rise and investors gain; when rates rise, the reverse happens, leading to mark-to-market losses. The higher the duration, the sharper those swings ten...