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.



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