The yield on India’s 10-year government security held near 6.8%, largely unchanged from the previous session, as investors weighed easing geopolitical tensions against uncertainty over the initial US–Iran peace understanding and an uptick in sovereign supply. Market participants also tracked the scheduled auction of INR 216 billion in state government bonds.
Sentiment was supported by a sharp decline in crude oil prices after US President Donald Trump announced a memorandum of understanding aimed at ending the conflict. Brent crude had dropped nearly 5% in the prior session to its lowest close since March 4, before edging higher in Asian trade as investors waited for more clarity on the deal.
At the same time, foreign investors have bought more than $1.75 billion of Indian bonds over the past seven sessions, following Reserve Bank of India measures designed to attract dollar inflows, further bolstering demand for government securities.
