India's benchmark 10-year government bond yield traded lower on June 24 as softer global crude oil prices boosted investor sentiment and strengthened expectations of a stable inflation outlook. The yield on the benchmark bond was trading at 6.8220 percent during the morning session.

Market participants drew comfort from the decline in Brent crude prices, which fell to around $77 per barrel after recent volatility. Lower crude prices are generally viewed as positive for India, a major oil importer, as they help contain inflationary pressures, reduce the import bill, and support the country's fiscal and external balances.

The bond market also received support from continued foreign investor interest in Indian government securities. Foreign portfolio investment into debt instruments under the Fully Accessible Route (FAR) witnessed a sharp increase during June, reflecting sustained global appetite for Indian fixed-income assets.

Meanwhile, the Indian rupee weakened by 16 paise against the US dollar as the greenback strengthened to a one-year high in global currency markets. Despite the pressure on the domestic currency, easing crude prices helped offset some concerns among bond investors.

Market participants are expected to closely monitor upcoming domestic inflation data, liquidity conditions, and signals from the Reserve Bank of India regarding the future path of interest rates. Movements in global oil prices and foreign capital flows are also likely to remain key drivers of the bond market in the near term.