India's 10-year bond yields hit new high—what's going on?

Business Dec 10, 2025

India's 10-year government bond yield just climbed to 6.63%, its highest point this fiscal year—even though the RBI recently cut interest rates.

Why does this matter for you?

When bond yields rise, it means the government pays more to borrow money, which can trickle down to higher loan and investment rates for everyone.
Plus, foreign investors have pulled out over ₹8,000 crore from Indian bonds in just a week, showing they're getting cautious.

What's behind the spike?

Global money moves fast: Delays in the US trade deal and a weaker rupee have made foreign investors nervous.
At the same time, rising yields on US and Japanese government bonds are making Indian bonds less attractive—so even with RBI trying to help, global trends are calling the shots right now.