India 10Y Yield Falls to 1-Month Low

2026-06-08 07:28 By Mariene Camarillo 1 min. read

The yield on India’s 10-year G-Sec hovered around 6.9%, remaining near a one-month low as investors continued to assess the implications of the Reserve Bank of India’s supportive policy measures announced last week.

While the RBI’s decision to maintain its policy rate and stance was accompanied by initiatives aimed at boosting foreign participation in government securities and attracting long-term capital inflows, the decline in yields was partially offset by a sharp rise in global crude oil prices.

Brent crude surged 4.5% toward $97 per barrel following renewed hostilities in the Middle East, including Israeli air strikes in Lebanon that breached a recent truce and dampened hopes for a broader de-escalation of the US-Iran conflict.

Despite these external headwinds, Indian bonds remained supported by the RBI’s latest measures, which fueled a rally across the yield curve last week.

Long-term yields declined by 2–3 basis points, while short-term yields fell by more than 10 basis points.



News Stream
India 10Y Yield Falls to 1-Month Low
The yield on India’s 10-year G-Sec hovered around 6.9%, remaining near a one-month low as investors continued to assess the implications of the Reserve Bank of India’s supportive policy measures announced last week. While the RBI’s decision to maintain its policy rate and stance was accompanied by initiatives aimed at boosting foreign participation in government securities and attracting long-term capital inflows, the decline in yields was partially offset by a sharp rise in global crude oil prices. Brent crude surged 4.5% toward $97 per barrel following renewed hostilities in the Middle East, including Israeli air strikes in Lebanon that breached a recent truce and dampened hopes for a broader de-escalation of the US-Iran conflict. Despite these external headwinds, Indian bonds remained supported by the RBI’s latest measures, which fueled a rally across the yield curve last week. Long-term yields declined by 2–3 basis points, while short-term yields fell by more than 10 basis points.
2026-06-08
India 10Y Yield Falls on Inflow Measures
The yield on India’s 10-year G-Sec fell to around 6.9%, trimming recent gains to a four-week low as investors welcomed new measures to attract foreign investment into the country's debt market. Sentiment improved after the government exempted foreign investors from taxes on interest income and capital gains from government securities, boosting the appeal of Indian bonds. Additional support came from the Reserve Bank of India, which kept its benchmark repurchase rate unchanged at 5.25% and expanded foreign access to government securities by including new 15-, 30-, and 40-year issuances under the Fully Accessible Route while easing certain investment restrictions. The measures strengthened expectations of increased foreign participation in India's debt market, supporting bond prices and weighing on yields despite persistent concerns over inflation and elevated energy costs.
2026-06-04
India 10-Year Yield Rises Ahead of RBI Decision
The yield on India’s 10-Year G-Sec hovered around 7%, firming after a brief stabilization as renewed Middle East tensions lifted oil prices. Brent crude rose about 1% for a third straight session to nearly $97 per barrel after US-Iran diplomatic efforts stalled and fresh regional hostilities heightened concerns. Government bonds remained under pressure as elevated oil prices and a weaker rupee reinforced expectations that the RBI may need to maintain a more hawkish policy stance. Investor attention is now on the RBI's policy decision due Friday. While most economists expect rates to remain unchanged, markets have increasingly started to price in the possibility of future tightening as policymakers grapple with rising inflation risks. Investors are also keeping an eye on substantial debt issuance, with Indian states set to raise INR 241 billion through bond sales and the federal government scheduled to auction INR 340 billion of a new 10-year 2036 bond later this week.
2026-06-01