India 10-year bond set for best month in 7 years on oil slide, foreign demand

India's benchmark 10-year government bond yield fell to 6.7223%, its lowest since March 18, on track for a 28 basis point monthly decline, the steepest since July 2019. Foreign investors bought nearly $3 billion of Fully Accessible Route bonds in June, a record monthly inflow, supported by RBI measures to attract dollar inflows and the government's removal of taxes on foreign investment in government bonds. Brent crude's 21% drop in June to around $72.50 a barrel eased rate hike expectations, prompting HSBC to forecast a $25 billion balance of payments surplus for FY ending March 2027.