Indian govt's 10-year bond yield down 0.10% on tax relief-driven FPI buying

Indian government bond yields dropped sharply in the last four days, with the benchmark 10-year yield falling 0.10 per cent, as Foreign Portfolio Investor (FPI) inflows picked up after the government's recent tax relief measures for debt investments. According to the data compiled by PTI, the 10-year benchmark bond yield eased to 6.911 per cent on Wednesday, from 7.024 per cent on June 3. Money market experts attributed the easing yields on government securities to heavy inflows of Rs 11,026.331 crore in the last four days by foreign investors in these securities under the Fully Accessible Route (FAR). FAR allows non-resident investors to invest in specified Government of India dated securities without any investment ceilings. Inflows by foreign investors started after the government on June 5 promulgated an ordinance amending the Income Tax Act to provide tax exemption on interest income and capital gains arising from the sale, exchange or transfer of government securities held by

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