Indian 10Y Yield Hits Over 3-Month High

2025-12-10 06:51 By Joshua Ferrer 1 min. read

The yield on India’s 10-year G-Sec was at 6.6%, its highest level in more than three months amid declining expectations of further interest rate cuts by the Reserve Bank of India.

The central bank lowered the repo rate by 25 basis points to 5.25% at its December meeting, its first move in six months, after inflation hit record lows and growth stayed firm, a combination policymakers described as a “Goldilocks” backdrop.

However, the RBI maintained a neutral stance and indicated this could be the final cut for now, with future support likely delivered through liquidity operations.

The central bank will buy bonds worth 500 billion rupees on Thursday, covering maturities from four to 25 years, but excluding the most-traded and liquid 10-year paper.

Globally, markets are now focused on the Federal Reserve’s policy decision due later in the day, with expectations for a 25 bps cut.

Although, uncertainty lingered amid fears of a hawkish guidance and a slower pace of cuts in 2026.



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