India 10-year government bond yield hits 6.91% as oil drops
Business
India's 10-year government bond yield dropped to 6.91% on Tuesday, the lowest since April, mainly because global oil prices are falling.
This marks the fourth day in a row that bonds have rallied, helped by the Reserve Bank of India's recent moves to attract more foreign investment.
RBI attracts $800 million inflows
The RBI's efforts brought in $800 million from foreign investors in just two days, giving the bond market a solid boost.
Still, India relies on oil imports for 90% of its needs, so it stays sensitive to global price swings.
Even as lower oil prices help now, rising inflation and slower GDP growth could put pressure on the fiscal deficit target ahead.