Indian government bonds surged Wednesday as expectations of further rate cuts by the RBI intensified, driving the 10-year benchmark yield below 6.20%. Positive economic growth forecasts and substantial liquidity infusion are contributing to the rally.

• 10-year benchmark yield breached the 6.20% mark.
• RBI is expected to cut rates by 25 bps on June 6th.
• OIS rates may follow bond yield decline low volume.