India 10-Year Yield Holds Steady

2025-12-19 09:13 By Joshua Ferrer 1 min. read

The yield on India’s 10-year G-Sec held steady around 6.6%, as investor focus turned to planned debt sales following recent support from the central bank’s liquidity injections.

New Delhi aims to raise 300 billion rupees through bond auctions later today, including 180 billion rupees of the widely traded five-year note.

Market participants see this as a key test of demand, with analysts noting that strong appetite would support current sentiment, while weak participation could push yields higher.

The Reserve Bank of India reinforced market sentiment earlier in the week with two sizable bond purchases totaling 500 billion rupees on Thursday, bringing its total acquisitions this year to a record 6.5 trillion rupees.

However, foreign investor interest remains subdued as steep US tariffs and the lack of a US trade deal continue to hurt sentiment, which may weigh on overall demand.

On the policy front, yields may face upward pressure as markets see the RBI’s rate-cutting cycle may be over.



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