The yield on India’s 10-year G-Sec hovered around 6.9%, remaining near a one-month low as investors continued to assess the implications of the Reserve Bank of India’s supportive policy measures announced last week. While the RBI’s decision to maintain its policy rate and stance was accompanied by initiatives aimed at boosting foreign participation in government securities and attracting long-term capital inflows, the decline in yields was partially offset by a sharp rise in global crude oil prices. Brent crude surged 4.5% toward $97 per barrel following renewed hostilities in the Middle East, including Israeli air strikes in Lebanon that breached a recent truce and dampened hopes for a broader de-escalation of the US-Iran conflict. Despite these external headwinds, Indian bonds remained supported by the RBI’s latest measures, which fueled a rally across the yield curve last week. Long-term yields declined by 2–3 basis points, while short-term yields fell by more than 10 basis points.

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