Indian government bonds posted their first weekly gain in five weeks on Friday, driven by a combination of falling crude oil prices and dovish signals from the Reserve Bank of India.
The benchmark 6.94% 2036 bond yield ended the session at 6.7651%, reflecting improved investor appetite for sovereign debt amid easing energy cost pressures.
The move marks a notable reversal in sentiment for the Indian fixed-income market, which had faced sustained selling pressure in recent weeks.
The decline in yields was supported by robust foreign inflows and a broader risk-on environment that also saw Indian equity markets end a five-session losing streak earlier in the week.
The Nifty 50 index rose 0.96% to close at 23,995.95, underscoring the cross-asset relief provided by lower oil prices.
Lower crude costs are particularly significant for India, the world’s third-largest oil importer, as they help alleviate inflationary pressures and improve the current account balance.