India’s 10-Year Government Bond Yield Falls Nearly 6 Basis Points to 6.5155%

India’s benchmark 10-year government bond yield fell by about 6 basis points on the latest trading session, settling at 6.5155%, down from the previous close of around 6.57%. This move came amid a muted reaction to recent macroeconomic data indicating steady inflation and GDP growth figures, underpinning market confidence.

Investors are focusing on the Reserve Bank of India’s (RBI) forthcoming monetary policy announcement scheduled for early December, with expectations ranging from a 25-basis point rate cut to a status quo decision. The yield’s fall suggests some easing in market concerns over rising borrowing costs.

The 10-year yield is a key indicator of long-term borrowing costs for the government and influences lending rates across the economy. A moderate decline in yields typically reassures markets about inflation containment and fiscal discipline. Recent government reform plans and robust economic data have contributed to the cautious optimism.

This latest yield trend fits within the narrow trading range observed over recent months, highlighting balanced investor sentiment and steady risk appetite in India’s debt market.

Key Highlights

10-year government bond yield declines nearly 6 bps to 6.5155%.

Previous close was near 6.57%, marking a notable downward correction.

Market awaits RBI’s December policy decision with mixed expectations.

Yield movement indicates investor confidence amid steady inflation and GDP data.

The 10-year yield influences broader financial conditions and lending rates.

Trend fits within recent narrow trading band, signaling balanced sentiment.

Sources: TradingEconomics, Investing.com, Market analysis reports