Indian bonds rise as benchmark yield falls 3 basis points before ₹33,000 crore sale
Veena Lathe
- 0 min read
Last Updated: 29th October 2026 - 04:05 pm
Indian government bonds rose on Thursday, with the benchmark 6.94% 2036 bond yield falling 3 basis points to 7.4091% by noon before Friday’s ₹33,000 crore bond sale. Gains were supported by lower US Treasury yields and Brent crude prices, but a weaker rupee limited the move.
Indian bond yields slip below 7.40% before the ₹33,000 crore sale
The benchmark Indian government bond yield moved under 7.40% during early Thursday trading and later retraced. By noon, the 6.94% 2036 bond yield stood at 7.4091%, down 3 basis points.
Investors remained cautious before New Delhi’s ₹33,000 crore bond sale scheduled for Friday, according to the Indian government bond market.
The benchmark yield stayed within a 7.41%-7.49% weekly range
The 10-year Indian government bond yield had moved between 7.41% and 7.49% during the week.
Traders covered positions after the yield failed to move past 7.5%, according to the Indian government bond market.
US Treasury and Brent crude prices support Indian bond yields
The 10-year US Treasury yield fell 5 basis points to 4.99% in Asian trade. Brent crude fell 1% to $114 a barrel as hopes of a peace agreement reduced concerns about supply disruptions.
Rupee weakness follows the RBI’s recent rate decision
The rupee weakened 0.15% to 95.36 per dollar, reviving inflation and rate-hike concerns, according to the Indian currency market.
The Reserve Bank of India raised the repo rate and tightened its policy stance earlier this month.
Overnight indexed swaps traded in different directions. The one-year rate was 6.6850%, the two-year rate was 6.74% and the five-year rate fell 1 basis point to 6.8675%.
The Federal Reserve kept rates unchanged late on Wednesday. It signalled that inflation remained elevated, while expectations of a December rate hike remained intact.
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