New Delhi, July 2 -- India's 10-year government bond yield is expected to trade with a softening bias in the range of 6.25-6.35 per cent during the current month, according to a recent report by Bank of Baroda.

The report highlighted that several domestic and global factors are influencing the movement of yields.

It stated "we expect India's 10Y yield to trade with a softening bias in the range of 6.25-6.35 per cent in the current month".

Globally, yields have been affected by increased risk aversion due to the geopolitical tensions in the Middle East. As a result, yields in major advanced economies (AEs), including the US and UK, are also moving with a softening trend.

In the US, weak macroeconomic indicators, especially a cooling la...