The yield on the 10-year Indian G-Sec was around 6.79%, holding close to its lowest since mid-December, as evidence of slowing economic growth bolstered expectations of rate cuts by the RBI next month. The government’s first advanced estimates projected growth to slow to 6.4% in FY25, its lowest in four years and below initial forecasts, driven by weaker investment and manufacturing. India’s economy grew by only 5.4% in the second fiscal quarter ending September, well below estimates and close to a two-year low. Meanwhile, headline inflation eased from a 14-month high, dropping to 5.48% in November from 6.21% in October. The central bank expects inflation to reach 4.8% for the fiscal year ending March 2025. Meanwhile, the recent appointment of Sanjay Malhotra to succeed Shaktikanta Das, who had been widely considered the most hawkish member of the RBI’s Monetary Policy Committee, has raised speculation among market analysts that it could strengthen the case for rate cuts.