The yield on India’s 10-year G-Sec edged down to around 6.8%, retreating from recent gains as softer crude oil prices and lower US Treasury yields improved demand for sovereign debt.
Brent crude fell about 1.5% to around $87.7 per barrel, extending the previous session’s 1.8% decline, as continued tanker flows through the Strait of Hormuz and the Red Sea eased supply concerns despite stalled US-Iran talks.
Meanwhile, the US 10-year Treasury yield slipped to around 4.65%, reversing part of Thursday’s surge after signs of progress toward a potential peace plan in Gaza reduced safe-haven demand, and falling oil prices reinforced the decline in yields.
However, gains in Indian bonds remained limited as investors awaited New Delhi’s INR 340 billion auction of the benchmark 10-year bond and next week’s Reserve Bank of India policy decision, where the central bank is widely expected to keep its key policy rate unchanged.