India 10Y Yield Eases Ahead of RBI Decision

2026-08-04 07:27 By Mariene Camarillo 1 min. read

The yield on India’s 10-year G-Sec hovered around 6.8%, retreating from recent gains as investors turned cautious ahead of the Reserve Bank of India's policy decision, with markets widely expecting the central bank to keep its key interest rate unchanged.

Lower oil prices from the previous session also improved sentiment, supporting bond demand despite Brent crude rebounding to around $84.8 per barrel on Tuesday.

Traders largely stayed on the sidelines ahead of the policy outcome and guidance on growth and inflation, while also awaiting the auction of INR 268.5 billion in state bonds.

Although sentiment remained weighed by Bloomberg Index Services' decision to defer India's inclusion in its flagship Global Aggregate Index, the setback was partly offset by expectations of steady monetary policy and continued foreign inflows, with overseas investors having purchased INR 367 billion of bonds under the Fully Accessible Route since the beginning of June.



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India 10Y Yield Eases Ahead of RBI Decision
The yield on India’s 10-year G-Sec hovered around 6.8%, retreating from recent gains as investors turned cautious ahead of the Reserve Bank of India's policy decision, with markets widely expecting the central bank to keep its key interest rate unchanged. Lower oil prices from the previous session also improved sentiment, supporting bond demand despite Brent crude rebounding to around $84.8 per barrel on Tuesday. Traders largely stayed on the sidelines ahead of the policy outcome and guidance on growth and inflation, while also awaiting the auction of INR 268.5 billion in state bonds. Although sentiment remained weighed by Bloomberg Index Services' decision to defer India's inclusion in its flagship Global Aggregate Index, the setback was partly offset by expectations of steady monetary policy and continued foreign inflows, with overseas investors having purchased INR 367 billion of bonds under the Fully Accessible Route since the beginning of June.
2026-08-04
India 10Y Yield Rises as Index Inclusion Delayed
The yield on India’s 10-year G-Sec hovered around 6.84%, edging higher after losses in the previous session as investor sentiment remained subdued following Bloomberg's decision to defer the inclusion of Indian government bonds in its Global Aggregate Index. The decision disappointed investors who had largely viewed index inclusion as a near certainty, triggering foreign sales of nearly $600 million in bonds under the Fully Accessible Route over the last six sessions, including the biggest weekly outflow in four months. Still, overseas investors remained net buyers of $3.9 billion in FAR bonds between June 1 and July 31. Investors also awaited this week's Reserve Bank of India policy meeting, where economists expect the central bank to keep interest rates unchanged, while closely monitoring its assessment of inflation risks from elevated oil prices and weak monsoon rainfall.
2026-08-03
India Yield Retreats on Softer Oil
The yield on India’s 10-year G-Sec edged down to around 6.8%, retreating from recent gains as softer crude oil prices and lower US Treasury yields improved demand for sovereign debt. Brent crude fell about 1.5% to around $87.7 per barrel, extending the previous session’s 1.8% decline, as continued tanker flows through the Strait of Hormuz and the Red Sea eased supply concerns despite stalled US-Iran talks. Meanwhile, the US 10-year Treasury yield slipped to around 4.65%, reversing part of Thursday’s surge after signs of progress toward a potential peace plan in Gaza reduced safe-haven demand, and falling oil prices reinforced the decline in yields. However, gains in Indian bonds remained limited as investors awaited New Delhi’s INR 340 billion auction of the benchmark 10-year bond and next week’s Reserve Bank of India policy decision, where the central bank is widely expected to keep its key policy rate unchanged.
2026-07-31