Indian government bond yields slip: 10-year yield drops to 6.57%
On Tuesday, Indian government bond yields slipped, with the 10-year yield dropping to 6.57%.
This happened as states raised a hefty ₹316.5 billion through bonds—well above what was scheduled—for the second week in a row.
Traders expect that long-term investors will absorb the extra supply, which could help keep things steady.
Bond market meets RBI
The surge in bonds comes just as investors are feeling uneasy about recent ups and downs in yields, plus news that GST tax cuts might mean even more government borrowing later this year.
The GST council meets Wednesday and Thursday to hash out those changes while states look to protect their incomes.
Meanwhile, bond market folks are set to meet with the Reserve Bank of India this week to discuss borrowing plans for the rest of fiscal 2025 and ways to keep markets calm amid rising concerns about India's finances.