The yield on the 10-year benchmark government bond in India closed below 7% for the first time in 13 months due to strong demand at a primary sale and anticipation of softer inflation, which boosted appetite for sovereign debt. The 10-year bond yield closed at 6.99%, a level not seen since April 2022. Lower bond yields typically translate into lower borrowing costs for other entities as sovereign debt is used to price corporate debt. A fall in India's CPI inflation makes a strong case for the Reserve Bank of India to maintain an extended pause on rate hikes, according to bond dealers.