Bond Yields

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

Simultaneous fiscal and monetary tightening hurt growth and earnings, but momentum is returning, says Axis Bank's Neelkanth Mishra, signalling a possible market turnaround

Despite a recent RBI rate cut, investor bids stayed above issuer expectations, forcing PFC and SIDBI to cancel planned bond raises amid rising yields and market volatility

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

Optimism building around potential announcement of an OMO calendar

RBI engages with market participants amid widening India-US yield spread; bond purchases unlikely before final CRR cut at month-end

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