India bond yields drop for third straight month amid easing inflation

India’s bond yields have fallen for the third consecutive month, with the biggest fall in over three years due to easing commodity prices and lower inflation rates. The benchmark 7.26% 2033 bond closed at 6.9874%, marking the first time it has dropped below 7% in 13 months. Retail inflation fell to 4.70% in April, leading economists to anticipate several upcoming readings to remain below the Reserve Bank of India’s upper tolerance level. Despite US yields rising in May, India’s bond yields continued to fall.