Nearly 5% global oil slide boosts Indian 10 year bonds
A sharp nearly 5% fall in global oil prices has made Indian government bonds way more attractive, giving the 10-year note its best day since early April.
Since India is the world's third-largest oil importer and consumer, cheaper crude helps ease inflation and government spending worries.
Investors are jumping in to grab solid returns, especially with the US midterm elections around the corner, which could affect the prospects for a US-Iran ceasefire and sustained oil price correction.
India 2036 yield drops to 7.3154%
The bond market moved fast: yields on the key 2036 bond dropped nearly 10 basis points to 7.3154%, marking the biggest one-day dip in months.
The rupee also got stronger against the US dollar, and stock markets climbed higher.
With long-term rates falling quicker than short-term ones (a trend called "bull flattening"), investors seem more optimistic about inflation staying in check.
All eyes are now on how US politics might impact oil prices next.