India’s 10-Year Government Bond Yields Hold Steady Near 6.51% Amid Central Bank Support

India's 10-year government bond yields have hovered near steady levels, with the benchmark 6.33% 2035 bond yield at approximately 6.51% as of November 7, 2025, reflecting a minor decline from past sessions. This stability comes amid sustained interventions by the Reserve Bank of India (RBI), which has been actively buying government securities to support the debt market and curb upward pressure on yields.

Market participants, including insurers and pension funds, have also shown steady interest, collectively purchasing significant volumes of government bonds. These purchases aim to ensure adequate liquidity and market stability ahead of upcoming debt auctions, including a notable ₹32,000 crore issuance of new 10-year bonds planned to replace existing benchmarks.

The RBI has expressed concerns over elevated bond yields that persist despite policy rate cuts and widening yield differentials with US Treasuries, engaging with market stakeholders to understand conditions and potentially adjust strategies.

Market watchers anticipate that the combination of RBI support and strong demand from investors will keep yields within a narrow range in the near term, with key focus on economic data and central bank communications.

Key Highlights

India’s 10-year government bond yield at 6.5128%, largely unchanged from previous close.​

RBI and institutional investors continue to purchase government securities to stabilize yields.​

Upcoming ₹32,000 crore 10-year bond auction to replace current benchmarks is closely watched.​

RBI concerned about high yields despite rate cuts; discussions ongoing with market participants.​

Bond yields expected to trade within a narrow range supported by robust demand and central bank actions.​

Sources: Trading Economics, Reuters, CCIL, ANI