The yield on India’s 10-year G-Sec eased to around 6.73%, edging lower from the previous session, as traders held positions rangebound ahead of January inflation data. India’s consumer prices are expected to rise to 2.4%, within the RBI’s 2%-6% target band, helping cap upward pressure. At the same time, the broader liquidity backdrop from earlier RBI actions has helped prevent a sharper rise in yields. Meanwhile, large state borrowing and upcoming debt auctions continue to keep supply pressure in focus. Investors remain attentive to the central bank’s next policy signals, as the repo rate was unchanged at the February policy meeting and no additional liquidity operations were announced. Over the past month, the 10-year yield has inched up 13 basis points but remains effectively flat compared with a year ago. Market participants will continue to monitor RBI liquidity management, upcoming inflation prints, and debt supply.
