Indian bond yields hold steady ahead of fresh supply
India's 10-year government bond yield is holding at 6.51% after a recent dip, following a major bond sale last week that matched market expectations.
Another ₹280 billion worth of longer-term bonds are set to hit the market this Friday, which could shake things up.
Bond yields impact borrowing costs for government, businesses
Bond yields affect how much it costs for the government and businesses to borrow money.
The RBI kept its policy rate at 5.50% in September, pointing to low inflation, which gives some breathing room for future growth.
Rate cut expectations in December
Markets are now eyeing a possible rate cut in December, thanks to the RBI's hints and a brighter GDP growth outlook.
Recent RBI guidance and steady bond demand have helped calm yields after earlier swings, but everyone's watching Friday's auction and future RBI decisions for the next move.
Yields likely to remain stable for now
Yields are likely to stay stable for now, with policy support and strong demand balancing out the flood of new bonds.
Still, global trade risks could pop up later—so it's worth keeping an eye on how things unfold.