India 10Y Yield Rises Ahead of Fiscal Auction

2026-02-26 07:19 By Mariene Camarillo 1 min. read

The yield on India’s 10-year G-Sec rose to around 6.7%, reversing earlier losses, as the market awaited upcoming debt issuance.

Attention now turns to supply dynamics, with New Delhi scheduled to sell INR 320 billion of the benchmark 2035 bond on Friday, the final auction of the note for the current fiscal year.

The level of demand and the cut-off yield at the auction are expected to set the tone for bond market direction in March.

The rise in yields, however, was limited by broader market sentiment, supported by sustained interest in longer-dated securities.

Ultra-long bonds, particularly the 30-year and 40-year papers, have seen continued buying from long-term investors, including insurance companies, amid increased inflows in recent weeks.

So far this financial year, yields on 30-year and 40-year securities have risen by roughly 45 basis points, compared with a more modest 10-basis-point increase in the 10-year benchmark.



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