Government Securities (g Sec)

Indian benchmark bond yield surges to 6.63%, highest level in current financial year

In the last one week, the bond yields have gone up by around 10 basis points (Bps). This is despite the 25 basis points (Bps) rate cut by the Reserve Bank of India (RBI) in the December monetary policy.

RBI's g-sec holdings rise, bond yields to stay rangebound: Report

Central government is likely to borrow around Rs 1 lakh crore every month until February 2026, with a smaller amount expected in March, a report said

Moderation in investor appetite, high supply push state development loan yields up by 1% over 10-year G-sec

An analysis by Moneycontrol of the Reserve Bank of India’s (RBI) data showed that yield spread between 10-year State Development Loans (SDLs) and government securities has widened to a 5.5-year high

Why an uptick in bond yields is a concern for the government?

The 10-year benchmark bond yield, a threshold for borrowing rates in the money market, spiked by 18-20 basis points (bps) after the announcement of the recent GST reforms. The measures, while aimed at stabilising revenues and demand, raised speculation that that the government might adjust its borrowing program, which lead to increase in bond yields.

Retail investors’ trading activity in G-secs on RBI Retail Direct platform rises over fivefold in August 2025

According to the RBI data, retail investors' trading activity in the secondary market in G-secs stood at Rs 4,267.55 crore as on August 11, 2025, compared to Rs 668.36 crore as on August 12, 2024.

Indian bond yield eases after S&P upgrades India's rating to 'BBB'

S&P Global Ratings raised its long-term unsolicited sovereign credit ratings on India to 'BBB' from 'BBB-', and its short-term ratings to 'A-2' from 'A-3'. The outlook on the long-term rating is stable.

State borrowings via SDL become costlier as rate cut hopes fade

Government bond yields have been on the rise since the RBI’s status quo in the August monetary policy. Though the decision was in line with the market expectation, few participants expected a surprise rate cut.

FPI investment in G-secs still slow despite pause on Trump tariffs in a sign of caution

According to Clearing Corporation of India’s (CCIL) data, foreign investors investment in government bonds stood at Rs 2.95 lakh crore as on May 2, compared to Rs 3.06 lakh crore as on April 2, before the imposition of Trump's tariffs.

Cut-off yield range on benchmark bonds in FY25 at auctions remain lowest in three fiscals

In FY22, the repo rate was lower at 4.00 percent and the RBI, after containing interest rates during the pandemic, was increasing it amid high inflation, hence yields were going up at a moderate rate. The next two financial years saw a higher yield on the government securities due to higher inflation and higher repo rate for a longer period.

FPI funds in Govt bonds fall as gap between India, US bond yields narrows

FPI investment in Fully Accessible Route (FAR) securities stood at Rs 2.66 lakh crore as on February 24, as compared to Rs 2.75 lakh crore as on February 7.

FPI invest over around Rs 11,000 cr in Indian G-sec post inclusion in Bloomberg bond index

Bloomberg Index Services (BISL) added Indian bonds in Bloomberg Emerging Market (EM) Local Currency Index on January 31.

Corporate bond issuances touch all-time high of over Rs 10 lakh crore so far in 2024

The yield on corporate bonds has declined by around 43 basis points so far in 2024, tracking the easing yield on government securities, prompting more issuers to tap the market and raise funds at better rates.

Bull-steepening to return in G-sec market on low short-tenure bond supply, expectation of rate cut by RBI

Centre’s borrowing for the second half of FY25 at Rs 6.61 lakh crore was in line with the budgeted target for the second half of the financial year, according to the October-March borrowing plan released by the government on September 26.

Spread between 10-year G-Secs and SDLs widens in September

The spread between the 10-year SDL and G-Sec stood at 37 bps on September 3 from 32 bps on April 2. Usually, whenever the spread between G-Secs and SDLs widens, it indicates a rise in state borrowings,

Most banks take a hit on Q1 treasury income amid RBI’s new investment portfolio norms

Barring ICICI Bank, Punjab National Bank, Central Bank of India and AU Small Finance Bank, which witnessed increase in treasury income, other reported a dip.

RBI MPC: FPIs keen on 5-10-year FAR securities, low on 30-year bonds, says Patra

On July 29, the RBI in consultation with the Government has decided to exclude all new securities of 14-year and 30-year tenors from the FAR.

Indian bond yields ease almost 8-10 bps in one month on positive cues

According to the CCIL data, the 10-year benchmark bond 7.10 percent 2034 yield stood at 6.933 percent on July 30, as compared to 7.012 percent on July 2.

Indian bond yields may soften post marginal cut in gross govt borrowing, fiscal deficit

Finance Minister Nirmala Sitharaman in a speech presenting the full Budget for 2024-25, said the Centre marginally cut the gross borrowing target from the markets in 2024-25 to Rs 14.01 lakh crore to finance its fiscal deficit of 4.9 percent of the GDP.