The yield on the benchmark 10-year bond has fallen to its over one-year low as post-election rally in the equity market has also augured well for the bond markets. Also, rupee's positive movement, fall in crude oil price and the announcement of RBI's OMO also hint at a favourable landscape for the Indian bond markets going ahead.

Also, after a staggering redemption in the month of May, there is now expected some foreign portfolio investors' buying with the coming of NDA back to power.

Last benchmark 10-year bond yield at 7.173%, while during the day, the lowest yield recorded was at 7.16%, its lowest level since April 9, 2018. The Reserve Bank of India (RBI) last week announced an open market operation to buy up to 150 billion Indian rupees ($2.16 billion) worth of bonds on June 13.

Before the monetary policy review announcement on June 6, the bond market is expected to remain positive.

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