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Indian bonds surge post Israel-Iran ceasefire
A fresh ceasefire between Israel and Iran has helped calm global markets, and Indian government bonds are feeling the good vibes.
On Tuesday, the 10-year bond yield dropped over 5 basis points to 6.2504%—its biggest fall since May 13.
Falling oil prices (Brent crude slid nearly 2.7%) added to the positive mood.
Ceasefire reassures investors
The ceasefire, confirmed by both countries and announced by US President Trump, reassured investors even though there were a few reports of violations.
India's five-year swap rates also dipped as market sentiment improved.
Meanwhile, banking system liquidity hit a three-week low due to tax outflows—a reminder that local factors still matter for where rates go next.