11.11.202507:43:46UTC+00India 10Y Yield Nears One-Month Low

India's 10-year Government Security (G-Sec) yield fell below 6.5%, marking its lowest level in almost a month. This drop reflects market anticipation that the Reserve Bank of India (RBI) might step in to bolster the bond market through open market operations or by releasing a schedule for such operations. The decline is largely attributed to the tighter liquidity within the banking system, which has resulted from the RBI's foreign exchange interventions aimed at supporting the rupee. This situation has fueled expectations that the RBI would buy bonds, evidenced by its recent purchase worth 6,357 crore rupees via the NDS-OM platform.

Additionally, investors are keeping a close watch on potential adjustments to the borrowing schedules of the central and state governments, as such changes could alleviate supply pressures and help stabilize yields in the weeks ahead. In an update on international trade, U.S. President Donald Trump announced on Monday that Washington is close to finalizing a trade agreement with India. However, the financial markets have remained cautious, seeking concrete progress in these discussions.