Bond Yields

The RBI has announced Rs 1 trillion in OMO purchases to cushion tightening from advance tax outflows, even as broader pressures on durable liquidity persist due to forex interventions

The rupee slid to a new low of 92.30 per dollar as tensions in West Asia drove crude higher, before recovering after RBI sold dollars and bought bonds to curb volatility

Large transfers and bond buys by the Reserve Bank of India have supported fiscal maths and liquidity; sustaining this when inflation or capital flows shift may prove harder

Even as bond yields eased after the policy review, supply pressure and limited relief from switches mean the 10-year yield is expected to stay firm through Q4, with cuts or liquidity support unlikely

Despite easing after the policy review, government bond yields are expected to stay elevated in Q4 as supply pressure persists, debt switches offer limited relief and liquidity support appears unlikel

The dollar, said Aditya Bhave, senior US economist at BofA Global Research, will most likely remain the world's reserve currency.

The yield on the benchmark 10-year government bond hardened by 9 basis points to settle at 6.74 per cent

The 10-year benchmark yield rose to 6.69 per cent after the MPC held rates steady and the RBI refrained from announcing fresh OMOs, despite market expectations

Budget FY27 signals deeper banking reforms, possible PSB consolidation and higher borrowing, shifting the onus to RBI to manage yields and liquidity

As RBI reviews its inflation-targeting framework ahead of 2026, former MPC members back the 4% CPI target, saying the model has anchored expectations despite global shocks

As the surge in g-sec yields remains a drag on long-duration and g-sec scheme performance

Indian investors are in a difficult spot, given the uncertainty. In January to date, the benchmark Nifty saw a small correction of around 3.3 per cent after gaining 9.8 per cent in 2025

Investors are on guard for moves in Japan spilling over into global markets amid the prospect of continued volatility in Tokyo trading ahead of the snap poll Takaichi is scheduled for February 8

Indian government bond yields hit a 10-month high as rising US Treasury yields and cautious sentiment kept pressure on the domestic debt market

The yield on the benchmark 10-year government bond settled at 6.61 per cent, against the previous close of 6.64 per cent

The surge in supply comes as demand remains weak, with pension funds shifting toward equities and insurers cutting back amid lower sales of guaranteed-return product

If these are the three challenges, there are also three key developments that everyone will watch out for

Heavy state government borrowing is expected to keep bond yields elevated in 2026, while the rupee, after its worst Asian performance in 2025, is seen trading in a narrow range

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