India’s 10-Year Government Bond Yield Inches Up Nearly 3 Basis Points to 6.5732%

The yield on the Indian 10-year government bond, a key indicator of long-term borrowing costs and financial stability, recorded an uptick of approximately 3 basis points, ending at 6.5732% on December 1, 2025. This compares to the prior close of 6.5463%, signaling a mild correction in bond prices.

Bond yields and prices move inversely, so the rise in yield suggests a slight decline in bond prices, shaped by multiple factors including government borrowing, inflation expectations, and global economic developments. Market participants are closely watching India’s fiscal discipline measures, RBI’s monetary policy stance, and international interest rate trends for direction.

The sustained rise also highlights investors' recalibration of risks amid steady inflation moderation and expected policy actions to support economic growth. Foreign institutional investor (FII) flows and domestic demand dynamics in the government securities market continue to influence yield movements.

Key Highlights:

India 10-year government bond yield rises nearly 3 bps to 6.5732% from previous close of 6.5463%

Yield increase corresponds to mild drop in bond prices due to market factors

Influenced by government borrowing plans, inflation outlook, and RBI policy signals

Reflects investor recalibration amid improving inflation and growth prospects

FII activity and domestic demand impact market liquidity and yield trends

Sources: Trading Economics, Investing.com, Bloomberg