Indian government bond yields dropped sharply in the last four days, with the benchmark 10-year yield falling 0.10 per cent, as Foreign Portfolio Investor (FPI) inflows picked up after the government's recent tax relief measures for debt investments. According to the data compiled by PTI, the 10-year benchmark bond yield eased to 6.911 per cent on Wednesday, from 7.024 per cent on June 3. Money market experts attributed the easing yields on government securities to heavy inflows of Rs 11,026.331 crore in the last four days by foreign investors in these securities under the Fully Accessible Route (FAR). FAR allows non-resident investors to invest in specified Government of India dated securities without any investment ceilings. Inflows by foreign investors started after the government on June 5 promulgated an ordinance amending the Income Tax Act to provide tax exemption on interest income and capital gains arising from the sale, exchange or transfer of government securities held by
In the bond market, the pause combined with a cautious undertone suggests that yields are likely to remain range-bound in the near term, albeit with a discernible upward bias as inflation risks build.
Bond yields show the return investors demand for lending money. When yields rise, borrowing becomes costlier for governments, companies and consumers across the economy
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Indian benchmark bond yield rose to a 14-month high on Monday, possibly due to surge in Brent crude oil prices amid escalating conflict in the Middle east. The 10-year government bond yield was trading at 6.8173 per cent around 11 am on Monday, as compared to Friday's close of 6.737 per cent. The yield is highest since January 14, 2025, according to the data compiled from market participants. "Bond yields are rising in response to crude oil prices climbing above USD 110 amid escalating tensions between the US-Israel and Iran. Foreign institutional investors who were net buyers of government bonds in January and February, have also turned net sellers in March," said Mataprasad Pandey, vice-president at Arete Capital (Choice Group). He added that higher crude prices are not only fuelling inflation concerns but also putting pressure on India's trade and current account balances, which is a big negative for the already depreciating rupee moving towards 94. "These factors not only dampe
NaBFID's maiden one-year CD issue raised Rs 5,000 crore at 6.95%, pricing tighter than comparable AIFI issuances and signalling strong investor confidence in short-term funding markets
NaBFID withdrew its maiden three-year bond issue after investors sought higher yields amid hardening G-sec rates and geopolitical tensions that dampened market sentiment and pricing
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
10-year bond yield at 6.72%, highest since March 2025
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
The 10-year benchmark government bond yield has risen 14 bps since the RBI's 25 bps repo rate cut, as traders price in the move as the last of the cycle and foreign investors unwind positions
Government bond yields remained unchanged on Friday as the cut-off for the new 10-year paper matched market expectations, with traders watching US Treasury moves next week
Fears of a widening deficit have pushed up the benchmark yield by 18 basis points this month, with the bulk of that rise coming last week
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
India's 10-year benchmark bond yield, which fell to 6.13 per cent on June 6, closed at 6.31 per cent on July 15
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