India 10-Year Benchmark Bond Yield Closes Lower at 6.7245%: Detailed Analysis of the Recent Decline

Yield Movement Analysis
The 6.48% 2035 bond (IN064835G=CC), India's 10-year benchmark, settled at 6.7245% Tuesday, reversing Monday's climb to 6.77-6.78% a 1-year peak triggered by FY27's record ₹17.2 trillion gross borrowing (up 17% YoY).

RBI's liquidity support and state supply cuts aided the pullback; yields inversely track prices amid inflation (5.5% CPI Jan) and repo at 6.25%.

​Market Implications
Lower yields boost EM debt inflows, EM benchmark status hopes; forecast: 6.68% Q1-end, 6.57% in 12 months. Track US Fed cues, fiscal slippage.

Key Highlights

• Close Details: 6.7245% (prev 6.7662%); daily change -0.0417%.
• Recent Peak: Hit 6.78% Mon post-budget; +13 bps past month, +4 bps YoY.
• Borrowing Pressure: FY27 gross ₹17.2T vs ₹14.61T FY26; states cut supply.
• Outlook: RBI ops counter supply; expect 6.56-6.65% range short-term.

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Sources: Trading Economics, Investing.com, Indian Express, MarketWatch.