The benchmark 10-year government bond yield declined by 1 basis point to 6.67% on February 25, compared with 6.68% on February 24, as per market data published by the Reserve Bank of India. Bond prices rose by 1 basis point during the session. Bond prices and yields move in opposite directions.

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On February 24, Indian states raised ₹46,100 crore through the weekly State Development Loans auction, higher than the notified amount of ₹44,550 crore, according to RBI auction results. The higher-than-indicated borrowing was absorbed by the market, supporting sentiment in the secondary bond market, Reuters reported.

Auction Details And Market Movement

The yield movement followed the state bond auction outcome. Market data showed that yields fell by about 2 basis points intraday before settling at 6.67%. The 10-year benchmark bond remains the reference for pricing sovereign debt and other fixed-income instruments.

The RBI conducts weekly auctions of state and central government securities and publishes issuance details and cut-off yields. Official data confirmed that the February 24 state auction size exceeded the scheduled amount by ₹1,550 crore.

Upcoming Central Government Auction

Attention now turns to the ₹32,000 crore auction of the 10-year benchmark government bond scheduled for February 27, as per the RBI’s auction calendar. The issuance will form part of the central government’s market borrowing programme for the current fiscal year.

Globally, U.S. Treasury yields and crude oil prices remain in focus, according to Reuters. Domestic bond yields also respond to liquidity conditions and supply from state and central government borrowing.

With the 10-year yield at 6.67% on February 25 and the state borrowing completed at ₹46,100 crore on February 24, bond market participants will track the February 27 auction and further RBI data releases for additional direction in sovereign debt markets.