Indian government bonds extended their decline for a second consecutive session following the unexpected decision to exclude domestic debt from a global index. This development has prompted a cautious outlook among market participants as they reassess capital inflow projections. Selling pressure is further exacerbated by rising crude oil prices, driven by escalating geopolitical tensions in the Middle East. Higher energy costs continue to weigh on fiscal sentiment, fueling concerns regarding inflationary pressures and interest rate trajectories. To mitigate volatility, the Reserve Bank of India is anticipated to intervene and provide liquidity support for bond prices. Despite the broader sell-off, certain investor segments have increased their positions, absorbing a portion of the market supply at current yields.