India 10-year yield falls to 6.72% on June 30
Business
India's 10-year government bond yield just had its steepest monthly fall since July 2019, dropping to 6.72% on June 30.
What's behind this? Cheaper oil and a flood of foreign investment are making India's financial outlook look much brighter.
Record Indian FDI bond inflows
Oil prices fell sharply, down more than 21% in June after an interim U.S.-Iran peace deal, which means India, as a major oil importer, saves big on costs.
At the same time, investors have poured nearly $3 billion into special Indian bonds (FAR bonds), setting a new record.
HSBC even predicts India could see a $25 billion surplus this financial year, flipping two years of deficits on its head.
All these moves are making global markets take notice of India right now.