India 10Y Yield Eases From Two-Week High

2026-08-19 07:39 By Mariene Camarillo 1 min. read

The yield on India’s 10-year G-Sec weakened to around 6.8%, retreating from recent gains as easing US Treasury yields and bargain buying after a two-day selloff supported demand for government bonds.

The US 10-year Treasury yield eased to 4.686%, offering some relief to Indian debt, while foreign investors continued to show demand, buying $3.04 billion of Indian bonds in July, their second consecutive monthly inflow after India scrapped capital gains tax on interest and sales of government securities for overseas investors.

The decline in yields was limited by elevated oil prices and renewed geopolitical risks, with Brent crude rising to around $92 a barrel as uncertainty over the Strait of Hormuz persisted.

The benchmark bond yield had climbed to a two-week high on Tuesday following the RBI’s early withdrawal of its discounted forex swap facility for banks hedging diaspora deposits.

Investors were also awaiting the RBI’s policy minutes for fresh interest-rate cues.



News Stream
India 10Y Yield Eases From Two-Week High
The yield on India’s 10-year G-Sec weakened to around 6.8%, retreating from recent gains as easing US Treasury yields and bargain buying after a two-day selloff supported demand for government bonds. The US 10-year Treasury yield eased to 4.686%, offering some relief to Indian debt, while foreign investors continued to show demand, buying $3.04 billion of Indian bonds in July, their second consecutive monthly inflow after India scrapped capital gains tax on interest and sales of government securities for overseas investors. The decline in yields was limited by elevated oil prices and renewed geopolitical risks, with Brent crude rising to around $92 a barrel as uncertainty over the Strait of Hormuz persisted. The benchmark bond yield had climbed to a two-week high on Tuesday following the RBI’s early withdrawal of its discounted forex swap facility for banks hedging diaspora deposits. Investors were also awaiting the RBI’s policy minutes for fresh interest-rate cues.
2026-08-19
India 10Y Yield Hits Near 4-Week High
The yield on India’s 10-year G-Sec strengthened to around 6.84%, extending gains for a second session to a near four-week high as surging oil prices and higher global bond yields heightened pressure on domestic debt markets. Brent crude climbed above $90 a barrel for the first time in nearly three weeks after the US-Iran ceasefire expired, raising concerns over renewed inflationary pressures and India’s external balance given its heavy reliance on imported oil. Meanwhile, the US 30-year Treasury yield climbed to its highest in almost 20 years, while the 10-year yield rose to 4.74%, raising the hurdle for emerging-market bonds. The market also remained wary of the RBI’s decision to end its FCNR(B) swap facility a month early, which is expected to reduce the liquidity and bond demand generated by the more than $50 billion of inflows under the scheme. With that support fading, Indian bonds are becoming more exposed to swings in oil prices and global rates.
2026-08-17
India 10Y Yield Edges Down to 4-Week Low
The yield on India’s 10-year G-Sec hovered around 6.75%, edging lower to four-week lows as easing oil prices and softer US Treasury yields supported demand for government bonds. Brent crude slipped below $87 a barrel after US crude inventories posted their largest weekly increase since January 2023, easing inflation and fiscal concerns for India, the world's third-largest crude importer. Meanwhile, the US 10-year Treasury yield hovered near 4.65% after July producer-price data showed contained wholesale inflation, prompting investors to scale back expectations for a September rate hike. However, gains in Indian bonds could be limited by the government’s INR 320 billion debt auction, including new three-year and seven-year securities, with investors watching demand for signs that the benchmark yield can break below the key 6.75% level.
2026-08-13