Indian government bond yields declined on Tuesday, with the benchmark 10-year yield settling at a three-month low.
The move marks a reversal of the four-week rally that had pushed yields higher amid concerns over rising energy costs and geopolitical tensions in the Middle East.
8364%, reflecting reduced pressure on the central bank to maintain a hawkish stance.
The benchmark 6.94% 2036 note closed with a yield of 6.8364%, reflecting reduced pressure on the central bank to maintain a hawkish stance.
As oil prices retreated, markets recalibrated their expectations for inflation, easing the immediate risk of further rate hikes.
This shift in sentiment has provided relief to fixed-income investors who had seen bond prices compress over the past month.
The decline in yields comes as the broader market digests the cooling of supply-side risks.