Foreign banks also stepped up purchases of bonds last week ahead of the inclusion, and is expected to continue this week as well
India's index-eligible bonds have attracted $10 billion since the inclusion was announced in September
While news of Modi's poor electoral showing triggered a bond selloff, the market later recovered after cabinet appointments including FM Sitharaman were seen to indicate no change
India's benchmark 10-year yield is likely to move in a 6.95 per cent-6.99 per cent range
US yields eased on Tuesday after data showed retail sales in the world's largest economy was weaker than expected in May
The yield saw its biggest single-session climb since Oct. 6 on Tuesday
India's benchmark 10-year yield is likely to move in a 6.94 per cent -7.00 per cent range, following its previous close of 6.9809 per cent , a trader with a state-run bank said
The latest halt in the global risk rally has come on the back of data pointing to lingering inflationary pressures across major economies
Liquidity is expected to improve significantly after the RBI's record surplus transfer to the government
Here's why the stock market rallied on Thursday, May 23: PSU bank stocks cheered RBI's dividend move; Optimism over election outcome coupled with ease in bond yields lifted NSE Nifty to a new high.
The 7.18 per cent 2033 bond yield is expected to trade between 7.05 per cent and 7.10 per cent, after ending at 7.0925 per cent, a trader with a state-run bank said
The yield on the 5-year government bond settled at 7.09 per cent on Friday
Inflation accelerated in the first quarter on strong domestic demand after moderating for much of last year
Barclays forecasts retail inflation for May at 5.0%
India's foreign-exchange reserves hit a record high in April, and the rupee has remained emerging Asia's best performing currency even against a strong dollar, reflecting increased investor interest
India will report consumer price inflation data today
Weak job data bolstered the speculation that the weakening economy would force the US Federal Reserve to cut rates
The US Treasury yields slipped on Thursday ahead of inflation reports that are pivotal for the Federal Reserve's higher-for-longer rate strategy
Yields declined on Monday tracking a drop in US yields, as traders turned optimistic on the Federal Reserve's rate cuts during the year after weaker-than-expected April nonfarm payrolls data
Bond yields declined at the start of the week, as the government announced a surprise buyback of bonds worth Rs 40,000 crore ($4.79 billion)