The yield on India’s 10-year G-Sec eased to around 7.16%, retreating after reaching more than two-year highs as lower-than-feared government borrowing provided some relief, while some buying emerged after Monday’s sharp selloff. The government reduced its FY27 gross borrowing target to about INR 15.99 trillion from INR 17.2 trillion previously, which could ease supply concerns, although the shift toward longer-duration issuance remains a headwind. Meanwhile, the US 10-year yield held around 5.23% after touching its highest level since June 2007, while Brent crude rose to around $106.65 a barrel, keeping inflation risks elevated and strengthening expectations of an RBI rate hike next week. Further RBI bond sales to drain surplus liquidity could also add to supply pressures, limiting the decline in yields.