Business · Markets · 3 hrs ago
India's 10-year bond yield drops to 7.31% as oil prices fall
India's benchmark 10-year bond yield fell to 7.31% on Monday, down nearly 10 basis points from its previous close of 7.40%.
The fall was the yield's steepest one-day decline since early April.
Bond yields move inversely to bond prices, so a falling yield indicates stronger demand for the bonds.
Oil prices dropped nearly 5%, helping lift demand for Indian government bonds.
Brent crude traded at about $108 a barrel, retreating from a six-month peak reached the previous week.
A stronger rupee and a larger banking-system surplus also helped ease pressure on the market.
Traders held back from new positions ahead of the US midterm elections on Tuesday, and the sources do not say what the yield will do next.
India’s benchmark 10-year bond yield fell nearly 10 basis points to 7.31%.
The decline was its steepest one-day fall since early April.
Falling oil prices spurred demand for the bonds.
Brent crude futures fell nearly 5% to $108 a barrel in Asian trade.
Traders held back from taking fresh positions ahead of the US midterm elections.
- Who
- Traders in India’s bond market.
- What
- The benchmark 10-year bond yield fell nearly 10 basis points to 7.31%.
- When
- Monday; the article was published on November 3, 2026.
- Where
- India’s bond market; the report is datelined Mumbai.
- Why
- Falling oil prices spurred demand for the bonds. Traders were also watching the US midterm elections.
This story does not have two clearly opposing sides.
Oil prices reached a six-month peak.
The 10-year bond yield opened at 7.40% and declined through the day as oil prices fell.
US midterm elections were due, prompting traders to hold back from taking fresh positions.
- 10-year bond yield
- 7.31%
- Previous close
- 7.40%
- One-day decline
- Nearly 10 basis points, the steepest since early April
- Brent crude futures
- Nearly 5% lower at $108 a barrel in Asian trade
- US midterm elections
- Tuesday
What people are saying
With crude prices easing and the rupee strengthening, market is finding some footing. There was also a better surplus in the banking system today, which reduced further pressure