•10Y IGB government bond yield softened from around 6.97% at the beginning of June to 6.71% by the first week of July, as easing geopolitical tensions in West Asia led to a sharp correction in crude oil prices and improved global risk sentiment. •Market sentiment was further supported by dovish remarks from the RBI Governor, who reiterated that the central bank has not signalled any interest rate hikes and will remain data-dependent amid ongoing global uncertainties. •India's Q4FY26 GDP growth came in stronger than expected at 7.8%, while May CPI inflation rose modestly to 3.9%, remaining below the RBI's medium-term target.
