10-year yield slips to 6.49% as investors await rate cut

Business Oct 08, 2025

Indian government bonds got a boost this Wednesday, with the 10-year yield slipping to 6.49%.
The excitement comes from hopes that the Reserve Bank of India might cut interest rates soon, especially after it kept rates steady but tweaked its inflation forecast.
Investors are now eyeing December for potential changes.

Factors at play

States announced lower-than-expected borrowing—₹2.82 trillion—which reassured investors and showed strong demand at recent auctions.
Plus, US Treasury yields are dropping too, making Indian bonds even more attractive right now.
All eyes are on Friday's government bond auction conducted by the RBI for more clues about where things are headed next.