Indian government bonds barely moved on Monday
Indian government bonds barely moved on Monday, with the key 2035 bond yield at 6.71%.
This comes after the 2035 bond rose 4 basis points, its biggest jump in two weeks, as markets keep a close eye on global tensions and heavy upcoming auctions.
Why it matters
Bond yields affect everything from home loans to corporate borrowing—so when they move, your money feels it.
States are about to auction a record ₹445.5 billion in bonds this week, which could balance out any potential RBI rate cuts and influence borrowing costs.
Global situation and local rate hints
Global jitters are high after new US tariffs rattled markets, but recent US-Iran talks cooled oil prices down to $71 per barrel.
Meanwhile, hints from RBI officials about possible rate cuts have sparked more interest in government bonds.
Swap rates and investor interest
Swap rates dropped (two-year at 5.63%, five-year at 6.08%), showing changing expectations for future rates.
Plus, investors bought up nearly ₹20 billion in government bonds last week—another sign everyone's watching both world events and RBI signals closely.