The flare-up in tensions between India and Pakistan following Operation Sindoor may lead to a temporary slowdown in long-term bond issuances, typically 10 and 15-year bonds, in the domestic capital market, as issuers may hesitate to lock in rates for extended periods amid heightened uncertainty, according to market participants.
Despite escalating tensions with Pakistan, the yield on India's benchmark 10-year government bond has remained steady. Yields on 10-year government securities fell by 1 basis point on Wednesday.
The stability is attributed to the Reserve Bank of India's (RBI) proactive liquidity measures, including open market operations (OMOs), which have bolstered market

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