Indian bonds stay calm as RBI gears up for big buy

Business Dec 18, 2025

Indian government bonds barely budged on Thursday, with the 10-year yield just a touch lower at 6.5914%.
All eyes are on the Reserve Bank of India, which is about to buy ₹500 billion ($5.53 billion) worth of bonds—a move traders hope will help steady things after recent rises in yields.

Why are yields rising anyway?

Even though the RBI cut rates and pumped in cash recently, bond yields have climbed because foreign investors sold off $1.1 billion in December.
The mood is cautious—investors are waiting to see if this latest RBI bond purchase can cool things down and bring some short-term relief.