India's 10-year government bond yield falls to around 6.82% as investors cautiously buy ahead of bond auction

⑴ India's 10-year government bond yield is hovering around 6.82%, edging lower after a recent rise, as investors cautiously buy ahead of the government’s 280 billion rupee bond auction (including a new 15-year issue). However, the decline is limited as Brent crude has surged over 7%, surpassing $100 per barrel for the first time since May after a Saudi oil tanker was attacked in the Red Sea, keeping investors alert to rising inflation risks. ⑵ US Treasury yields are also weighing on sentiment, with the benchmark 10-year yield climbing to about 4.70%, the highest since January 2025. Investors are also assessing the impact on global trade and risk sentiment as the US imposes increased tariffs of 10% to 12.5% on around 60 economies (including a 10% tariff on Indian goods). Additionally, preliminary PMI data suggests slowing growth: manufacturing PMI fell to 53.9, services PMI to 53.1, and composite PMI to 54.3, the lowest since March 2022.