India 10Y Yield Hits 3-Year High

2026-10-12 07:14 By Mariene Camarillo 1 min. read

The yield on India’s 10-year G-Sec rose more than 1% to 7.38%, reaching its highest level in over three years, as the Reserve Bank of India’s liquidity-tightening measures and hawkish policy shift intensified selling pressure.

The central bank plans to sell INR 250 billion in bonds on Tuesday and raise banks’ daily cash reserve requirement maintenance to 99% from 90%, effective October 16, while its foreign-exchange measures could further drain rupee liquidity.

The RBI’s recent 25-basis-point rate hike and signals of further tightening have also prompted mutual funds to reduce exposure to longer-dated government bonds, following net sales of INR 378 billion in July-September and a further INR 51 billion in the three sessions after the rate increase.

Meanwhile, Brent crude above USD 100 per barrel and expectations of September inflation rising to 5.4% year-on-year added to concerns over price pressures.



News Stream
India 10Y Yield Hits 3-Year High
The yield on India’s 10-year G-Sec rose more than 1% to 7.38%, reaching its highest level in over three years, as the Reserve Bank of India’s liquidity-tightening measures and hawkish policy shift intensified selling pressure. The central bank plans to sell INR 250 billion in bonds on Tuesday and raise banks’ daily cash reserve requirement maintenance to 99% from 90%, effective October 16, while its foreign-exchange measures could further drain rupee liquidity. The RBI’s recent 25-basis-point rate hike and signals of further tightening have also prompted mutual funds to reduce exposure to longer-dated government bonds, following net sales of INR 378 billion in July-September and a further INR 51 billion in the three sessions after the rate increase. Meanwhile, Brent crude above USD 100 per barrel and expectations of September inflation rising to 5.4% year-on-year added to concerns over price pressures.
2026-10-12
India 10Y Yield Pauses Near Two-Year High
The yield on India’s 10-year G-Sec hovered around 7.29%, pausing gains after reaching two-year highs, as elevated crude oil prices and a hawkish Reserve Bank of India (RBI) stance continued to weigh on Indian yields, while fresh debt supply added to selling pressure. The government is set to raise INR 360 billion through a bond auction, including a sizable issuance of 15-year paper, raising concerns over demand amid rising yields. Brent crude remained elevated despite easing slightly from recent highs, keeping inflationary pressures and fiscal risks in focus for oil-import-dependent India. The RBI’s 25-basis-point rate hike to 5.50% on Wednesday, alongside its shift to a “calibrated tightening” stance and an upward revision to its inflation forecast to 5.2%, further reinforced expectations of monetary tightening, with economists anticipating the terminal repo rate to reach at least 6%.
2026-10-07
India 10Y Yield Steadies Ahead of RBI Decision
The yield on India’s 10-year G-Sec hovered around 7.2%, pausing gains after reaching two-year highs as investors braced for a potentially hawkish Reserve Bank of India policy decision, with nearly 60% of economists expecting a 25-basis-point rate hike. Traders are also awaiting guidance on the future pace of tightening and measures to absorb surplus banking-system liquidity, including a possible increase in banks’ cash reserve ratio or further bond sales. The RBI sold INR 1 trillion of government bonds in September, its largest sale in more than a decade, while rising overnight indexed swap rates signalled expectations of further policy tightening. The benchmark 6.94% 2036 bond yield has risen for seven consecutive weeks, gaining a cumulative 45 basis points, its longest such streak in more than a year.
2026-10-05