Indian government bonds tumble; yields hit 6.65%

Business Jan 05, 2026

Indian government bonds took a hit on Monday, with the 10-year yield jumping to 6.65%.
That's a noticeable bump from Friday, and it could mean pricier loans for everyone—from the government to folks looking at home loans.

Why does this matter?

When bond yields rise like this, borrowing gets more expensive across the board.
So if you're thinking about future interest rates or how much it costs to get a loan, these moves can eventually show up in your wallet too.

What's behind the drop?

States are planning to borrow a record ₹5 trillion between January and March, which is flooding the market just as banks are running low on extra cash.
To help out, RBI stepped in with a ₹500 billion bond buy—but traders still worry yields could climb even more if demand stays weak.