India’s benchmark bond yield fell below 7% on April 14, 2020, for the first time in more than a week. The yield on the 7.17% government bond maturing in 2029 fell to 6.96%. This was the lowest level since March 31 when it closed at 6.93%.
The fall in bond yields was attributed to increasing demand for safety from investors, with the U.S. 10-year Treasury yield hitting a three-week low at the same time. India’s central bank has slashed its benchmark interest rate by 75 basis points this month to 4.4%, following a sharp rise in coronavirus infections across the country and global risk-off sentiment. The yield on the 10-year government bond was at 6.90% at the close of the trading session.