India Bond Market

The 10-year benchmark yield rose as much 4 basis points to 7 per cent after the Reserve Bank of India announced plans to withdraw liquidity of up to ₹2 trillion ($21.6 billion)

The non-banking finance company will issue bonds with maturities of two, three, five and 10 years

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

To facilitate retail participation in G-Secs, RBI came out in November 2021 with a scheme for direct retail participation in G-Secs through its own depository system and the NDS-OM trading platform

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

India's bond markets have been battered by hefty government borrowings, with investors expecting a record ₹30 trillion of federal and state government debt supply in the next fiscal

Union Finance Minister Nirmala Sitharaman on Sunday announced a larger-than-expected gross market borrowing via dated securities of ₹17.2 trillion for FY27

The tough position that the bond market finds itself reflects a much more fundamental issue, of rising government bond supply chasing limited domestic savings pool

10-year bond yield at 6.72%, highest since March 2025

States had borrowed Rs 5 trillion through state bonds in the first half of FY26, with Q2 issuances marginally exceeding the indicative borrowing calendar, the first such instance in seven quarters

The yield on the benchmark 10-year government bond settled at 6.64 per cent, against the previous close of 6.60 per cent

The selling comes as the rupee tested a series of record lows against the dollar this month, eroding returns for foreigners

States are aiming to raise more than ₹33,200 crore, 25 per cent higher than the planned calendar, while Power Finance Corp is eyeing ₹6,000 crore and Bank of India plans to raise ₹10,000 crore

Chief Economic Advisor V Anantha Nageswaran on Friday flagged the concentration of large and well-rated companies in the bond market for raising funds, and said there is a need to enable mid-sized firms to access markets "systematically and affordably". There is also a need to increase liquidity in the markets, and investors need to shed the tendency of holding papers till maturity, Nageswaran said. The "double-engine" of bond markets and bank funding will help provide the required financial support for a growing economy like India going forward, he said. Amid wider calls for self-reliance in the economic sphere, the academician-turned-policymaker made it clear that domestic money should "anchor" the funding in the Indian debt markets, and foreign flows should "complement" it. "The challenge today is not the absence of a debt market but its concentration. Large and highly rated firms raise capital with ease. The task ahead is to enable mid-sized corporates, infrastructure SPVs, sup

The one-year OIS rate has dropped to a month-low, with markets pricing in a 20-bps repo rate cut by February after RBI's governor signalled room for easing, though uncertainty over December's move per

Axis AMC expects markets to shift towards a 'lower-for-longer' rate phase as tighter liquidity conditions set in

The review matters because Nomura is one of the key players in the Strips market, a niche but a fast-growing part of India's $1.3 trillion sovereign debt market

Fundraising rush follows SBI's record Oct issue as yields soften

25-bps rate cut by December looks likely, but RBI's neutral stance and global uncertainties mean yields may not fall sharply, says Jain

Indian firms raised Rs 5.47 trillion through bonds in H1FY26 as lower yields drove strong Q1 activity; experts expect a rebound in the second half as banks re-enter the market