On May 22, the benchmark 10-year government bond yield in India eased to 7.08%, down from 7.11% the previous day, as traders adopted a cautious approach ahead of a crucial weekly debt auction. This decline follows a period of volatility, with yields rising 45 basis points from 6.66% on February 27, just before military actions by the US and Israel against Iran. Kunal Sodhani, Head of Treasury at Shinhan Bank, highlighted that bond yields globally have surged to multi-year highs, driven by inflation concerns that may prompt central banks to raise interest rates. The Indian government is set to raise ₹32,000 crore through the sale of three, seven, and 30-year bonds, which is expected to influence intraday yield movements. Additionally, Brent crude prices remain elevated above $100 per barrel, further intensifying inflationary pressures. The Indian rupee opened lower at 96.28 against the dollar, as market participants await potential dollar sales by the Reserve Bank of India (RBI) to stabilize the currency, which had recently ended an eight-day losing streak.