Indian government bond yields fell on Monday as investors reacted to improved monsoon rainfall forecasts and continued demand from foreign portfolio investors.
The benchmark 6.94% 2036 bond yield settled at 6.6851%, marking a further decline in borrowing costs for the Indian government.
7180% on the same benchmark issue, driven by easing inflationary pressures linked to lower oil prices and a fragile ceasefire between the United States and Iran that reduced geopolitical risk premiums.
The move extends a rally that has persisted for five consecutive sessions.
Earlier in the week, yields had already dropped to 6.7180% on the same benchmark issue, driven by easing inflationary pressures linked to lower oil prices and a fragile ceasefire between the United States and Iran that reduced geopolitical risk premiums.
The latest decline reflects a confluence of domestic and external factors.
Better-than-expected monsoon rains alleviate concerns about agricultural output and inflation, while foreign investors continue to seek yield in emerging market debt.