The yield on India’s 10-year government bond rose toward 6.85%, extending the rebound from the three-week low of 6.77% touched on November 8th amid a hawkish Reserve Bank of India and softer growth expectations. Consumer inflation soared to 6.2% in October, well above market expectations of 5.8% to overshoot the RBI’s tolerance band for the first time in over one year. Consequently, market players erased positions that the RBI would deliver any rate cuts this year, lifting yields from their recent lows. In turn, bets that India will not be able to maintain annual growth rates of over 7% drove investors to reconsider the plunge in credit risk that Indian bonds enjoyed this year. The rush to Indian debt also drove companies to raise the supply of bonds, raising yields for G-Secs. Lastly, Indian bond yields were lifted by their exposure to US credit markets, as expansionary fiscal policy in the US and the outlook of fewer rate cuts by the Fed next year pressured bonds worldwide.
India 10Y Bond Yield was 6.86 percent on Monday November 18, 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 November 18 of 2024.
India 10Y Bond Yield was 6.86 percent on Monday November 18, 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 6.82 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 6.77 in 12 months time.