The yield on India’s 10-year G-Sec dropped to 6.48%, its lowest level in three weeks, after dovish signals from the Reserve Bank of India strengthened bets of a near term rate cut. The central bank’s meeting minutes showed policymakers increasingly open to easing, with Governor Malhotra noting that the downward revision in inflation projections provides policy space to support growth. India’s inflation eased to 1.54% in September, the lowest in eight years and below both the RBI’s 2–6% target and market forecasts of 1.7%, strengthening the case for a December rate cut. The RBI kept rates unchanged earlier this month, though two panel members favored moving from a neutral to an accommodative stance, signaling potential policy easing to support an economy under pressure from US tariffs. In the latest trade update, US President Trump said PM Modi agreed to halt Russian oil purchases, though New Delhi has yet to confirm, as its trade team continues talks with US officials in Washington.
