15.09.202607:37:46UTC+00India 10Y Yield Climbs to Near Four-Month High

The yield on India’s 10-year government security (G-Sec) climbed to about 7.1%, approaching a four-month high, as demand for sovereign debt weakened amid the RBI’s planned INR 1 trillion bond sales, elevated global yields, and mounting expectations of further monetary tightening.

To drain surplus liquidity—following banks’ larger‑than‑expected $127 billion mobilisation under the special forex scheme—the RBI will auction INR 500 billion of bonds on September 16, followed by INR 250 billion each on September 21 and 28.

In global markets, Brent crude hovered near $105 per barrel, while the US 10-year Treasury yield moved above 5%, its highest level since 2007, as supply disruptions in the Middle East reinforced inflation fears. Market participants now view a Federal Reserve rate hike on Wednesday as almost certain. Domestically, India’s consumer inflation accelerated to 4.82% in August from 4.45% in July, reaching its highest level since December 2024.

The benchmark Indian 10-year yield has now advanced for four consecutive weeks.