India 10Y Yield At One-Year High

2026-02-02 07:19 By Mariene Camarillo 1 min. read

The yield on India’s 10-year G-Sec climbed to around 6.76%, the highest level in a year, as government bonds face pressure amid a record borrowing plan for the upcoming fiscal year.

India unveiled its federal budget for the year starting April 1, revealing a gross borrowing target of INR 17.2 trillion, roughly 17% higher than the current year’s INR 14.61 trillion.

The higher-than-expected borrowing, combined with a lack of major policy incentives for bond investors, has created a supply-demand imbalance that has pushed yields higher.

Analysts noted that the Reserve Bank of India will need to remain the marginal buyer of government securities to provide support, continuing its bond purchases in the secondary market.

Despite these interventions, concerns over weaker capital flows and elevated borrowing requirements are sustaining upward pressure on yields, leaving investors bracing for a challenging start to the new fiscal year.



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