RBI's liquidity push is being neutralised by record state borrowing, keeping yields elevated and markets subdued - exposing deep fiscal strains beneath India's strong GDP numbers
Easing supply of ultra-long bonds and improving long-term demand may help flatten India's G-sec yield curve in FY27, aided by RBI liquidity support and index inclusion hopes
Simultaneous fiscal and monetary tightening hurt growth and earnings, but momentum is returning, says Axis Bank's Neelkanth Mishra, signalling a possible market turnaround
Government bond yields pared early gains on Friday as mutual funds and private banks sold at a profit after the RBI cut the repo rate by 25 bps and announced Rs 1 trillion of OMO purchases this month
Global tariff disputes and foreign outflows pressured the rupee, while RBI's 100-basis-point rate cuts and liquidity measures helped bond yields soften during the year
Bond yields rise despite RBI rate cuts as fiscal risks, GST revenue loss, and global conditions fuel market anxiety, dimming hopes of easing borrowing costs
FPIs sold Rs 17,262 crore of government securities under FAR in FY26 so far, but Q2 has seen a turnaround with Rs 14,540 crore in inflows as bond yield spreads widened
Six states borrowed Rs 14,900 crore at the weekly auction while Nagaland did not accept bids for its 10-year bond as long-term state bond yields fell sharply this week
Government bond yields eased on short covering and FPI buying ahead of a Rs 32,000 crore auction, with spreads between 10-year and 15-year bonds and SDLs widening further
NaBFID aims to raise $1 bn via ECBs and dollar bonds while Nabard eyes overseas fundraising by FY26-end as rising bond yields and global risks weigh on domestic mobilisation
Alongside fiscal concerns, pension funds and insurers have shunned bonds in favour of equities, while large banks have slowed purchases amid mark-to-market losses on existing bond holdings
Yields on state government bonds also hardened sharply. The 10-year SDL yield, which was in the range of 6.84-6.88 per cent in the first week of April, has climbed to 7.09-7.17 per cent as of Aug 19