India 10Y Yield Edges Higher

2025-10-13 12:05 By Luisa Carvalho 1 min. read

The yield on India’s 10-year G-Sec ticked up to around 6.53%, its highest level since October 1, reflecting investor caution and concerns over demand for government bonds.

Indian states are set to sell bonds worth 128 billion rupees via the sale of bonds on Tuesday, lower than most market estimates, potentially signaling tepid investor demand.

Meanwhile, traders digested the latest inflation data while also weighing renewed global uncertainty after President Trump floated the idea of punching up tariffs on China.

India’s inflation eased to 1.54% in September, below the RBI’s 2–6% target and market expectations of 1.7%, strengthening the case for interest rate cuts in December.

The Reserve Bank of India kept its benchmark interest rate unchanged earlier this month but signaled there may be room to ease policy in the coming months to support an economy under pressure from US tariffs.

Attention now turns to the RBI's upcoming monetary policy meeting minutes on October 15.



News Stream
India 10Y Yield Falls to Near Two-Month Low
The yield on India’s 10-year G-Sec fell to around 6.8%, its lowest level in nearly two months, as renewed foreign investor demand lifted sentiment in the debt market. Foreign investors purchased nearly INR 10,000 of Indian bonds over the last four trading sessions, supported by the government's decision to fully exempt taxes on gains from eligible debt investments and the Reserve Bank of India's move to expand the range of securities available to overseas investors. The inflows mark a turnaround after FPIs had net sold more than INR 10,119 of Indian debt since the start of the US-Israel conflict involving Iran. Bond yields also came under pressure from expectations of RBI support for the rupee. Traders indicated the central bank likely intervened after recent currency weakness, reportedly selling dollars in the spot market while conducting dollar-rupee buy/sell swaps with maturities exceeding one year through state-run banks.
2026-06-10
India 10Y Yield Falls to 1-Month Low
The yield on India’s 10-year G-Sec hovered around 6.9%, remaining near a one-month low as investor demand strengthened following the Reserve Bank of India’s recent measures to attract foreign currency inflows and support the rupee. The central bank introduced concessional swap facilities through September for state-run firms' overseas borrowings and certain foreign currency deposits, helping lower hedging costs and encouraging dollar inflows. Expectations that these initiatives could attract tens of billions of dollars into the banking system and improve India's external balance further supported demand for government bonds. Sentiment was also supported by a drop in crude oil prices to around $91 per barrel amid easing tensions between Iran and Israel, alleviating concerns over imported inflation and external financing pressures. Meanwhile, foreign investors remained net buyers of Indian sovereign debt, adding to downward pressure on yields across the curve.
2026-06-08
India 10Y Yield Falls on Inflow Measures
The yield on India’s 10-year G-Sec fell to around 6.9%, trimming recent gains to a four-week low as investors welcomed new measures to attract foreign investment into the country's debt market. Sentiment improved after the government exempted foreign investors from taxes on interest income and capital gains from government securities, boosting the appeal of Indian bonds. Additional support came from the Reserve Bank of India, which kept its benchmark repurchase rate unchanged at 5.25% and expanded foreign access to government securities by including new 15-, 30-, and 40-year issuances under the Fully Accessible Route while easing certain investment restrictions. The measures strengthened expectations of increased foreign participation in India's debt market, supporting bond prices and weighing on yields despite persistent concerns over inflation and elevated energy costs.
2026-06-04