The yield on India’s 10-Year G-Sec hovered around 6.8%, extending its decline to a two-month low as falling crude oil prices eased concerns over inflation and India’s external balances. Brent crude fell 5% for a second consecutive session, taking its cumulative decline over four sessions to around 15%, after details emerged of an interim US-Iran peace agreement that would allow Iran to resume oil sales, extend a ceasefire announced in April by another 60 days. The decline in yields was further reinforced by strong foreign demand for domestic debt, with overseas investors purchasing more than $2 billion worth of Indian bonds over the last eight sessions following the RBI’s June 5 measures to boost capital inflows. However, the move lower was limited by profit-taking after the recent rally and caution ahead of the Federal Reserve’s policy decision, as investors await guidance from Chair Kevin Warsh on the US interest-rate outlook for 2026.

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