Indian bond yields fall on FPI buying after tax relief

Key facts

• Indian 10-year benchmark bond yield decreased by 0.10% over four days.
• The yield reached 6.911% on Wednesday, down from 7.024% on June 3.
• Foreign portfolio investors (FPIs) invested Rs 11,026.331 crore in government securities via the Fully Accessible Route (FAR).
• The inflows were driven by recent tax relief measures for debt investments.

Indian government bond yields have experienced a notable decline over the past four days, with the benchmark 10-year yield falling by 0.10% to 6.911% as of Wednesday. This decrease is largely attributed to a surge in foreign portfolio investor (FPI) inflows into debt securities, particularly under the Fully Accessible Route (FAR).