The yield on the Indian 10-year G-Sec rose to 6.36% from the one-month low of 6.3% touched on July 21st as growing trade tensions with the US and the consequent plunge for the rupee drove foreign investors to trim their holdings. US President Trump stated he would imposte tariffs of up to 25% on India by the start of August, above the average for other major US trading partners as the Indian delegation refrained from making a trade deal with the White House. This was magnified by Indian diplomats noting that it may take a while to agree on terms with the US, delaying expectations of softer trade barriers. The events drove the rupee to plunge near record lows and threatened demand for key industries, countering the recent optimism on the Indian budget balance. Meanwhile, the RBI is expected to deliver another rate cut this year as headline inflation fell to a six-year low of 2.1% in June, approaching the lower end of the RBI's inflation tolerance band of 2%.