The US Federal Reserve has cut its benchmark interest rate by 25 basis points to 4-4.25% while hinting at two more cuts this year
                                                                                            Indian bond yield has been under pressure since last few weeks, especially after the announcement of the GST reforms by the government.
                                                                                            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.
                                                                                            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.
                                                                                            Bond yields have been on the rise since the Reserve Bank of India (RBI) kept policy rate unchanged in the August monetary policy.
                                                                                            Usually, when the oil prices rises, it have an impact on the domestic inflation due to India's heavy reliance on imported crude oil. This dependency means that rising oil prices could lead to higher costs across various industries, ultimately driving up inflation.
                                                                                            The spread between India and US bonds stands at 187 bps, which is one of the lowest. Usually, when the spread narrows, foreign investors pull back funds from emerging economies and park it in less risker destinations.
                                                                                            Since the announcement, Indian bonds in global indexes have been seeing sharp inflows, but soon after the rate cut cycle begun earlier this year, the differential between India and US narrowed, leading to these investors moving away.
                                                                                            The auction will take place on June 5 between 10:30 AM and 11:30 AM, and the settlement will take place on June 6.
                                                                                            The spread between Indian and US 10-year bonds recently fell to its lowest in over two decades, after the yield on US treasuries spiked over fiscal concerns.
                                                                                            According to the Bloomberg data, spread is lowest since July 28, 2004, when it was at 135 bps.
                                                                                            SEBI’s easing guidelines for FPIs may not spur demand in the short run, but easing macroeconomic conditions may give some comfort to these investors
                                                                                            Since the tariff imposition, US bond yields have fallen by around 23 basis points (bps), Japan’s by 36 bps, China’s by 15 bps, the Eurozone’s by 29 bps, the UK’s by 24 bps, Canada’s by 4 bps, and France’s by 10 bps. In contrast, Indian bonds remained almost steady at 6.479 percent on April 7, as compared to 6.481 percent on April 2, which was before the US tariff imposition.
                                                                                            During the January-March quarter, yields on government securities, particularly the 10-year benchmark bond, eased by around 20 basis points, driven by the Reserve Bank of India's OMO purchases, easing inflation, and a 25 bps policy rate cut.
                                                                                            The yield on government securities, especially the 10-year benchmark bond, has been witnessing a reduction since the start of this month. Data indicates that it has eased 15 bps so far in March.
                                                                                            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.
                                                                                            Bloomberg Index Services (BISL) added Indian bonds in Bloomberg Emerging Market (EM) Local Currency Index on January 31.
                                                                                            On June 28, JP Morgan included 29 government securities under FAR in its emerging market index. India carries a 1 percent weight in the index, with planned incremental increases each month until March 2025
                                                                                            On January 27, the had announced string series of measures, including a Rs 60,000 crore OMO purchase in three tranches and a VRR auction, to inject liquidity in the banking system
                                                                                            Going ahead, money market experts believe that another two-bond inclusion next year is expected to increase flows in these bonds
                                                                                            Looking ahead, this week is expected to be relatively subdued due to the holiday season in key markets like the U.S. and Europe, leading to thin trading volumes and reduced market volatility, said Amit Pabari, managing director at CR Forrx Advisors.
                                                                                            On December 9, the Appointments Committee of the Cabinet cleared the appointment of Sanjay Malhotra as next RBI Governor for a period of three years.
                                                                                            The central bank’s rate cuts anticipated from early next year on slowing economic growth, continued index-inclusion-related foreign inflows and strong demand from local pension and insurance companies are likely to further burnish the appeal of sovereign notes
                                                                                            FPI holdings in Indian government securities under the FAR route in absolute terms witnessed the second-biggest reduction so far this month in the calendar year, after the heavy drop in April.
                                                                                            Trump’s victory has fuelled expectations of a larger fiscal deficit and higher inflation down the road, which would limit the cuts the Federal Reserve will deliver.