India’s government bond market opened on a stable note on March 6, with the benchmark 10 year sovereign yield trading at 6.6462 percent, remaining close to a six week low recorded in the previous session. Market participants indicated that likely intervention by the Reserve Bank of India helped absorb selling pressure that had emerged due to rising global crude prices and geopolitical uncertainty.

The benchmark yield had slipped to 6.6406 percent in the previous session, marking its lowest level in over a month. In bond markets, yields move inversely to prices, meaning the drop in yields indicates renewed demand for government securities, possibly driven by central bank purchases and cautious positioning by institutional investors.

According to market participants, the central bank’s presence in the secondary market appears to have reassured traders at a time when external macro risks are rising. Elevated oil prices and geopolitical tensions are typically negative for bond markets because they increase the risk of imported inflation and wider fiscal deficits. However, the perceived support from the central bank has temporarily capped the upward movement in yields.

At the same time, traders remained largely on the sidelines, reflecting a wait and watch approach. Global markets have turned risk averse amid intensifying tensions in the Middle East as the US Israel Iran conflict continues to disrupt regional stability. Oil markets have responded sharply, with Brent crude holding above 84 dollars per barrel, raising concerns about inflationary spillovers for oil importing economies like India.