Indian government bonds are rallying for a sixth day. Falling oil prices are boosting investor confidence. This is happening despite a hawkish outlook from the US Federal Reserve. Expectations of a reopened Strait of Hormuz are driving oil prices down. Cheaper crude oil improves India's inflation and fiscal outlook. Foreign investors are also pouring money into Indian debt.

The yield on the benchmark 6.94% 2036 note was at 6.8563% as of 10:30 am, after closing at 6.8651% on Tuesday.

Indian government bonds saw their rally pause on Wednesday. Oil prices stabilized, and the US Federal Reserve's upcoming policy decision kept investors cautious. The benchmark…