India bond yields to decline further over global tensions, say dealers

With the bond yields in Europe in a negative territory, and the market expecting more than one rate cut by the Reserve Bank of India (RBI), the Indian bond market is at the midst of a great rally, with some more legroom to go.
 
The 10-year government bond yield fell to 6.84 per cent, recovering a little from Tuesday’s 6.81 per cent. On Monday, the yields had closed at 6.93 per cent. As yields rise, prices of bonds fall and vice-versa.
 
The bond market participants see the yields falling by another 15-20 basis points from the present level.