India’s 10-year government security yield eased to around 7.16% after reaching more than two-year highs, helped by lower-than-feared government borrowing and buying following Monday’s sharp selloff. The government cut its FY27 gross borrowing target to about INR 15.99 trillion from INR 17.2 trillion, reducing supply concerns, although the shift toward longer-duration issuance remains a headwind. The US 10-year yield held near 5.23% after reaching its highest level since June 2007, while Brent crude rose to around $106.65 a barrel. Elevated oil prices are keeping inflation risks high and strengthening expectations of an RBI (India’s central bank) rate hike next week. Further RBI bond sales to drain surplus liquidity could increase supply pressures and limit any decline in yields.