India’s 10-year bond yield rose to a nine-month high of 6.68% on Monday (Dec 22) as states announced a larger-than-scheduled bond auction for the week. Despite 125 basis points of rate cuts by the Reserve Bank of India this year, India’s benchmark 10-year bond yield has eased just 13 basis points, while that on the top-rated company bonds has climbed over 11 basis points. The yield on state bonds has risen sharply in recent months, widening their spread over the federal debt to around 40 basis points, according to data compiled by Bloomberg. The yield on state bonds has risen sharply in recent months, widening their spread over the federal debt. For a comparable borrowing, state bonds find far fewer takers as global investors and foreign banks avoid exposure to illiquid debt, while domestic players too have limits for investing in such bonds, Jain said.

Source: The Edge Markets December 24, 2025 04:06 UTC