The yield on the Indian 10-year government bond surged to over 7.2%, the highest since early January, amid an increasingly hawkish outlook for the RBI. After maintaining rates at their terminal level, the RBI stated that upside risks to inflation due to uncertain agricultural conditions may force a prolonged period of peak rates, driving markets to ease on previous bets of cuts this year. The bank also extended its “withdrawal of accommodation” policy, placing further pressure on G-Sec prices due to the additional selling in the secondary market. In the meantime, inflation concerns were magnified since the central bank’s latest decision as the rupee slumped to a record low, compounding the higher inflation expectations amid elevated energy prices due to persistent geopolitical uncertainty. Still, strong economic growth and the inclusion of rupee government debt in international bond funds limited an even steeper downturn for G-Secs.
India 10Y Bond Yield was 7.21 percent on Friday April 26, according to over-the-counter interbank yield quotes for this government bond maturity. Historically, the India 10-Year Government Bond Yield reached an all time high of 14.76 in April of 1996. India 10-Year Government Bond Yield - data, forecasts, historical chart - was last updated on April 26 of 2024.
India 10Y Bond Yield was 7.21 percent on Friday April 26, according to over-the-counter interbank yield quotes for this government bond maturity. The India 10-Year Government Bond Yield is expected to trade at 7.02 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 6.92 in 12 months time.