Indian government bonds rally as 2036 yield falls to 7.1880%
Indian government bonds are on a winning streak, seeing their biggest rally since April.
The main reason? Oil prices dropped after the US midterm elections, which is great news for India, the world's third-largest oil importer and consumer.
This helped push the benchmark 6.94% 2036 bond yield down more than 11 basis points to 7.1880%, with its three-day fall to about 22 bps, which could limit further tightening.
Crude oil $102.2 eases inflation pressures
The US elections led to hopes of less tension in the Middle East, calming global oil markets and bringing crude prices down to $102.2 a barrel.
With lower oil costs and a stronger rupee, inflation pressures are easing up at home.
Investors are feeling more confident about India's economy, and if this trend continues, borrowing could get cheaper for both businesses and consumers.