Mumbai, Aug. 26 -- The 10-year government bond yield fell over 6 basis points on Monday as finance minister Nirmala Sitharaman reaffirmed the government's confidence of meeting its fiscal deficit target for financial year 2020. Slump in international crude oil and US bond yield also boosted sentiment.

At 9.13am, the 10-year government bond yield was at 6.517% compared with its previous close of 6.574%. Bond yield and prices move in opposite directions.

"The growth slowdown is part-cyclical and part-structural. To counter it, there are typically four policy levers: fiscal, monetary, reforms, and exchange rate. So far, monetary policy has done much of the heavy lifting. The government has now demonstrated its penchant for triggering the lev...