Since the onset of the conflict in the Middle East, foreign portfolio investors (FPIs) have withdrawn ₹17,689 crore (approximately $2.1 billion USD) from Fully Accessible Route (FAR) government securities in India. This withdrawal reflects increased risk aversion among global investors and rising concerns over inflation driven by surging crude oil prices. As per data from the Clearing Corporation of India (CCIL), FPI investments in FAR government securities fell to ₹3,13,318.661 crore as of April 1, down from ₹3,31,007.648 crore on February 27. The outflows have coincided with a sharp increase in domestic bond yields, particularly after geopolitical tensions raised global crude oil prices, tightening financial conditions across emerging markets. The yield on Indian government bonds, especially the 10-year benchmark bond, has risen by about 0.33%, with the benchmark yield settling above 7% for the first time in over 20 months on March 27. Bond market experts suggest that elevated yields diminish the appeal of existing bond holdings, prompting foreign investors to reduce their exposure in interest rate-sensitive segments like government securities under the FAR route. HDFC Bank's report indicates that the 10-year government bond yield is expected to trade within the range of 6.90% to 7.20% in the near future.