India bonds rise as index-entry hopes counter rise in US yields

Indian government bonds rose, with the benchmark 6.94% 2036 bond yield falling 1 basis point to 6.7403%, driven by expectations of Bloomberg index inclusion of Fully Accessible Route (FAR) bonds. Foreign investors bought a record 299 billion rupees (around $3.16 billion) of FAR bonds after India and the RBI unveiled supportive measures in June. Liquidity also improved to a surplus of 1.12 trillion rupees, though caution persists over geopolitical tensions and a technical resistance at 6.75% on the 10-year yield.