Mumbai, June 4 -- India's benchmark 10-year government bond yield could decline further if the Reserve Bank of India (RBI) announces a policy rate cut of more than 25 basis points in its upcoming monetary policy on June 6, according to a report by Bank of Baroda.

The central bank's Monetary Policy Committee (MPC) is scheduled to announce its decision on Friday. While markets largely expect a 25 bps cut, the report stated that any reduction above this level could trigger a further downward movement in bond yields.

The report said "Any reduction in policy rate more than the expected 25bps might lead India's 10Y yield to trade further downward".

It added that India's 10-year bond yield is expected to trade between 6.15 per cent and 6.27 p...