India's benchmark 10-year government bond yield (IN064835G) closed higher at 6.5995%, up from the previous close of 6.5745%. The 25 basis point rise signals investor caution driven by inflation concerns, global rate dynamics, and domestic liquidity conditions in the fixed income market.
India's flagship 10-year government security yield ended the session at 6.5995%, marking an increase of 2.5 basis points from the prior close of 6.5745%. The uptick reflects broader market sentiment amid persistent inflationary pressures and anticipation of monetary policy signals from the Reserve Bank of India.
Traders noted sustained foreign institutional investor outflows and positioning ahead of key economic data releases contributed to the yield hardening. The benchmark G-Sec remains a critical indicator for borrowing costs across corporate bonds, home loans, and overall interest rate environment in the economy.
This movement underscores the fixed income market's sensitivity to both domestic growth indicators and global yield trends from U.S. Treasuries.
Key Highlights:
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Closing Yield: 6.5995% (IN064835G).
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Change: +2.5 bps from previous close of 6.5745%.
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Market Drivers: Inflation worries, FII outflows, RBI policy outlook.
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Implications: Higher borrowing costs for corporates and consumers.
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Trading Volume: Active session with yield curve steepening observed.
Source: RBI reference rate updates and bond market data, December 17, 2025.