NEW DELHI: Bond yields are falling across the globe, and not just in India. The bigger question is whether India will be able to attract the $10-13 trillion capital now lying in bonds that are yielding below-zero returns.The 10-year benchmark bond yields in India fell to more than three-year lows last week, but India still remains attractive for overseas investors, since yields on more than one-third of the sovereign bonds across the world have turned negative.The yield on the 10-year bond maturing in 2026 was at 7.32 per cent after falling to 7.31 per cent, the lowest ever, earlier on Tuesday. It had closed at 7.38 per cent on Monday.In an interview with ET Now, Raamdeo Agrawal, MD & Co-Founder, MOFSL, said there is a very big opportunity forIndia provided we (India) create an environment which canhelp sustain growth and kickstart the investment cycle."India is the biggest importer of capital in the world today, and that capital is literally free. There is no price, as there arenegative interest rates. About $13 trillion bonds, 10-yearbonds have a negative interest rate,” he said.Agrawal said we have to create an environment for that money to flow into India at any price. We have to create conducive environment. He is positive on defence, aviation, infrastructure and oil & gas sector which, Agrawal think, could become value opportunities.Bond yield in India has been on a downward trajectory since February. There is an inverse relationship between the bondyields and bond prices, which means that whenever the yieldscome down, the underlying value of the instrument goes up.FPIs have invested a net of Rs 121 crore in debt securities so far this month, after the selling spree over the past two months, data from NSDL, a depository, showed.Bond yield is the amount of return an investor will realise on a bond if held till maturity. Nominal yield is calculated by dividing the amount of interest paid by the face value.Over $10 trillion worth of global bonds are now yielding below-zero returns amid growth concerns and expectations of further easing by central banks, which in a simple words means investors are paying the government to borrow from them, ET said in a report.There is a risk-on rally across the globe after the Brexit vote, but expectations of further easing by global central banks to support growth have eliminated the fear of the unknown.US Federal Reserve is unlikely to increase interest rates anytime soon after the Brexit and funds are now on the lookout for investment avenues.“Market watchers said India can attract somewhat $2-3 billion owing to the stability of the domestic economy and the government's commitment to fiscal prudence,” said an ET report.Investors parked huge sums of money in safe havens to hedge against the Brexit, but it was a non-event for markets. After a knee-jerk reaction, markets managed to bounce back and there was no doomsday scenario.In a scenario where safe-haven investments are not giving them any yields, all the money is now coming back to equities, experts said."It looks like market participants created positions ahead of Brexit and invested in safe havens like gold and bonds and so we saw bond yields turn negative," Parag Thakkar, Head-Institutional Sales, HDFC Securities, said in an interview with ETNow."So, approx $11 trillion is lying in negative yields and that has started to come off. We are seeing US bond yields go up from 1.38 to 1.43, so there is some selling in treasuries because people had over-anticipated the event and parked a lot of money in the safe haven and that money is coming out into equities,” Thakkar said.Most fund managers are positive on India even though we have rallied more than 20 per cent in a matter of five months. The focus is on quality stocks, which can benefit from government reforms, monsoon and economic growth."We think long-term investors will remain focused on domestic-oriented economies like China, India, Indonesia and the Philippines. Investor positioning in the last 18 to 24 months has been an overweight on India in regional or global portfolios," Medha Samant, Investment Director, Fidelity International, said in an interview with ET Now."We still think India is one of the most defensive stories from a global perspective and it is also supported by a very strong domestic story. In the short term, a sentiment boost would be the likely passage of the GST bill in the forthcoming parliamentary session. But I think what is more important is really how this earnings cycle pans out and what the final monsoon outcome is,” she said.