MUMBAI: Indian government bond yields fell further with the benchmark 10-year yield easing to its lowest level in three months on Tuesday, tracking a persistent decline in U.S. treasury yields as well as global crude prices.

The benchmark 10-year bond yield was trading at 7.2159% at 0405 GMT, after falling to 7.1810% earlier, its lowest since May 4. It had ended at 7.2402% on Monday.

The 10-year yield has now fallen for nine straight sessions on the back of easing expectations of continued aggressive rate hikes by the Reserve Bank of India (RBI), which is scheduled to announce its monetary policy decision on Friday.

Though the RBI's monetary policy committee is seen raising rates on Aug. 5, the views on the quantum of rate increase were widely split between 25 basis points and 50 basis points, according to a Reuters poll of economists.

"Today's move is largely driven by the fall in U.S. yields as well as oil falling below $100 per barrel, but bets that rate hikes may not be very aggressive are also aiding sentiment," a trader with a state-run bank said.

The 10-year U.S. Treasury yield is down for the sixth consecutive trading session on Tuesday and was last at 2.5553% on bets that rising recession fears will force the Federal Reserve to go slow on its rate hiking cycle.

Oil prices fell on concerns over energy demand after weak economic data from China. The benchmark Brent crude oil contract slumped to $98.50 per barrel earlier on Tuesday. (Reporting by Dharamraj Lalit Dhutia; Editing by Shounak Dasgupta)