Indian government bonds advanced in early Friday trading, reversing the selling pressure that had weighed on the market earlier in the week.
The benchmark 6.94% 2036 bond yield slipped 2 basis points to 6.7348% by 11:10 am, tracking overnight gains in US Treasuries and a retreat in oil prices.
This move marks a shift from Wednesday’s session, when rising oil prices and higher US Treasury yields had pushed the same benchmark yield higher, weighing on emerging market assets.
The recovery in Indian debt was supported by continued foreign buying, with overseas investors purchasing a net ₹1,500 crore-worth of bonds on Thursday.
This inflow helped offset caution surrounding upcoming domestic debt sales, which had previously acted as a headwind for the market.
The resilience of Indian bonds comes as global fixed-income markets have faced pressure from a sharp rise in US Treasury yields, driven by geopolitical risks and shifting rate expectations.