Rising Bond Yields

The benchmark 10-year government bond yield climbed to 7.48 per cent, its highest since October 2022, as elevated crude prices and firm US Treasury yields weighed on the market.

The sharp rise in government bond yields since the Reserve Bank of India's (RBI) October monetary policy review threatens to increase the government's borrowing costs and put pressure on its interest expenditure, potentially squeezing fiscal flexibility, according to experts. Yield on the 10-year benchmark government bond rose to 7.474 per cent on October 23 from 7.193 per cent on October 6, increasing about 28 basis points, according to data compiled by PTI. The rise in yields has been driven by elevated crude oil prices, a spike in global bond yields, tighter liquidity conditions in the Indian banking system and expectations of more interest rate hikes by the RBI, market experts said. "If yields remain elevated, the cost of financing the fiscal deficit will rise, adding pressure on interest expenditure and fiscal flexibility," said V Ramachandra Reddy, head of treasury at Karur Vysya Bank. He said the approximately 30-basis-point rise in government securities yields since the ...

Big tech companies known as hyperscalers are willing to pay higher yields, because they're borrowing to fund artificial intelligence investments like data centers and AI chips

Stock market crash today: The meltdown on Dalal Street resulted in a decline in the market capitalisation of BSE-listed stocks by ₹10.20 trillion to ₹460.97 trillion.

The yield on India's 10-year bonds jumped 5 basis points to 7.27 per cent after the decision and was up 8 bps compared to Tuesday's close of 7.19 per cent, according to data on Bloomberg.

The US 10-year Treasury yield has climbed to 5.32 per cent from 4.15 per cent at the end of 2025, a rise of 117 basis points (bps) so far in 2026. Brent crude oil, meanwhile, is testing $100/bbl mark.

BSE Sensex ended the day at 243 points or 0.33 per cent at 72,529, while Nifty 50 closed the day at 22,716, down 64 points or 0.28 per cent.

The move, announced late Friday, surprised traders after Reserve Bank of India Governor Sanjay Malhotra had ruled out an early closure as recently as the Aug. 5 policy meeting

The benchmark 10-year yield is up about 34 basis points to 7 per cent since the outbreak of the Iran war three months ago

Since the start of the West Asia crisis, 10Y sovereign yields have risen by more than 50 bps across several advanced and emerging markets, including Japan, UK, US, Canada, Italy, Spain and South Korea

The upswing in the yield curve largely reflects worsening expectations around fiscal and inflation outcomes, an unfortunate fallout of the West Asia crisis for India's macros.

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

Notably, REC Limited raised ₹2,865 crore through 10-year bonds at a coupon rate of 7.06 per cent

After two weeks of buying, FPIs turned net sellers in Indian equities this week, with a net withdrawal of Rs 976 crore amid a strengthening US dollar and steady rise in US 10-year bond yields, impacting investor sentiment. Foreign Portfolio Investors (FPIs) began the week on a positive note, investing Rs 3,126 crore in equities during the first two trading sessions (December 16-20). However, the trend reversed in the latter half of the week, with FPIs offloading equities worth over Rs 4,102 crore in the subsequent three sessions. This resulted in an overall net outflow of Rs 976 crore during the week, data from National Securities Depository Limited showed. Despite this short-term reversal, the broader December trend remains positive. FPIs have infused Rs 21,789 crore into Indian equities so far this month, reflecting continued confidence in India's economic growth potential and its resilient markets. FPIs adopted a cautious approach due to the US Fed meeting and uncertainty about

The benchmark 10-year yield was at 6.9748 per cent as of 10:10 a.m. on Monday, close to the key technical level of 6.98 per cent

Foreign exchange reserves have declined by around $25 billion from the highest point in 2023

The US macroeconomic data in recent weeks reaffirmed the economy's resilience and strengthened expectations of interest rates remaining higher for longer

Capital expenditure of 13 major states is expected to grow 29% YoY, says ICRA

Over the past one month, the yields on 10-year government bonds have risen 14.7 basis points to 7.218 per cent in India, while they have touched a 17-year high of 4.35 per cent in the US

The rupee could continue to see near-term volatility