India's 10-year government bond yield falls to around 6.75%, supported by continued foreign capital inflows

⑴ The yield on India’s 10-year government bonds fell to around 6.75%, retreating from last week’s highs following a sharp drop in the previous session, as investors repurchased government bonds at lower prices and persistent foreign capital inflows continued to support demand. ⑵ However, market sentiment remains cautious: escalating tensions in the Middle East have kept Brent crude oil near $79 per barrel, while high U.S. Treasury yields exert pressure on the fixed-income market. ⑶ The latest Federal Reserve meeting minutes indicate ongoing concerns about inflation, reinforcing the possibility of another rate hike later this year and sustaining expectations for tighter U.S. monetary policy.