Oil slide anchors India 10-year yield at 3-month low

Indian benchmark 10-year government bond yield closed at a three-month low of 6.8364%, down from 6.8473% on Monday, supported by easing oil prices with Brent crude consolidating at $77.8 per barrel and receding U.S.-Iran geopolitical tensions. A potential Bloomberg Global Aggregate Index inclusion decision expected this month could further boost foreign inflows, with overseas investors already buying nearly 224 billion rupees of bonds in June. Risks remain as the monsoon rainfall deficit widened to 42% by June 21, raising El Nino-linked inflation and growth concerns, while the rupee is still down over 4% versus the dollar since the U.S.-Israeli war with Iran began.