New Delhi, March 23 -- Indian government bonds plummeted, while the rupee depreciated to a record low on Monday, following a sharp rise in US Treasury yields and a surge in crude oil prices amid prolonged US-Iran war.

The benchmark 6.48% 2035 government bond yield rose 9 basis points to 6.8261%, after closing at 6.7369% on Friday, reflecting selling pressure in the debt market.

In global markets, US Treasury yields advanced amid rising inflation concerns, which have strengthened expectations of potential interest rate hikes by the Federal Reserve.

The 10-year US Treasury yield rose 3 basis points to 4.41%, its highest level in nearly eight months, while the two-year yield climbed 4 basis points to 3.94%.

Meanwhile, the Indian rupee we...