This means investors can still find bonds offering higher yields before the market eventually catches up and prices rise. “In a falling interest rate cycle, it is the best scenario for bond investors because one of the primary risks – market risk – is essentially eliminated,” he added. Imagine you hold a bond that pays a 10 per cent interest rate. In 2025, investors who entered 10-year G-Secs at 7.1 per cent saw their bond prices jump as yields dropped toward 6.5 per cent. The interest rate cycle is a multi-year journey, and we are only in the middle of it.

Source: Mint December 28, 2025 04:47 UTC