The benchmark yield recorded its largest single-day drop since April as declining oil prices increased demand for the paper.
The benchmark 10-year bond yield fell nearly 10 basis points to 7.31 per cent on Monday, according to The Economic Times. This represents the steepest one-day decline for the bond since early April.
The yield opened at 7.40 per cent and declined throughout the day. This movement occurred alongside a drop in oil prices, as Brent crude futures fell nearly 5 per cent to $108 per barrel in Asian trade.
Gopal Tripathi, head of treasury and capital markets at Jana Small Finance Bank, said a better surplus in the banking system helped reduce pressure. He noted that the market is finding footing as crude prices ease and the rupee strengthens.
Traders are currently avoiding aggressive fresh positions before the US midterm elections on Tuesday.
