India 10-Year Bond Yield Dips to 6.5805%: Easing Signals Steady Liquidity

At 9:24 AM IST on December 15, 2025, the benchmark 10-year bond yield eased 1.23 basis points to 6.5805% from 6.5931%, signaling investor comfort with current liquidity conditions. The drop aligns with RBI's reported ₹7.26 trillion bank cash balances on Dec 12.

Key Highlights

Yield Softening: Fell to 6.5805%, driven by excess reserves reducing borrowing costs and boosting bond demand.

Liquidity Link: Ties to RBI's high bank balances and nil govt surplus, curbing upward yield pressure.

Rupee Context: Complements Rupee's mild weakening past 90.55, keeping inflation expectations anchored.

Trading Dynamics: Lower yields support potential Nifty recovery from pre-open 0.45% dip, aiding rate-sensitive sectors.

Outlook

Sustained liquidity could push yields toward 6.50% if global cues stabilize, benefiting borrowers while RBI monitors forex interventions.

Sources: Reserve Bank of India (RBI), Reuters