India G-sec yields turn marginally lower, firm economic cues could dominate sentiments

Indian G-sec yields turned marginally lower on Tuesday, with the 10-year benchmark bond yield falling further after breaking under 6.60% mark, as markets eyed heavy supply from state governments. The benchmark 6.33 GS 2035 yield is hovering around 6.57% right now. Economic cues remain firm. India's manufacturing sector expanded at the fastest rate in 17 years in August 2025. This can cap the downside in yields. A surge in WTI Crude oil prices in Asia could also weigh. The commodity hit one-week high of $65.10 per barrel today. Near term focus will stay on domestic tax collection trends. India collected a total of Rs 1.86 lakh crore as goods and services tax (GST) in August, 6.5% more than a year ago.