India’s 10-Year Benchmark Bond Yield Rises Slightly

India’s bond market opened with a modest rise in yields on February 12, 2026, as traders balanced supply concerns with expectations around inflation and monetary policy.

Key Highlights:

• Benchmark Yield: The 10-year government bond yield (IN064835G=CC) rose to 6.7200%, up from 6.7088% at the previous close.
• Investor Sentiment: Market participants remain cautious ahead of January CPI inflation data, which could influence RBI’s policy outlook.
• Supply Pressure: Large state borrowings and upcoming debt auctions continue to weigh on yields, keeping them rangebound.
• RBI Policy Context: The central bank recently held the repo rate steady at 6.50%, with no additional liquidity operations announced, helping cap upward pressure.
• Market Outlook: Analysts expect yields to remain in a narrow band, with inflation trends and fiscal borrowing plans acting as key drivers.

The slight uptick in yields underscores the delicate balance between fiscal supply pressures and monetary stability, as India’s bond market navigates global and domestic uncertainties.

Sources: Reuters, Investing.com India, Reserve Bank of India