The yield on India’s 10-year G-sec fell to around 6.66%, pulling back from multi-month highs, as expectations of continued liquidity support from the Reserve Bank of India lifted demand for government bonds. The central bank has already injected more than INR 9.1 trillion (USD 100 billion) into the financial system this fiscal year through bond purchases, foreign-exchange swaps and a reduction in banks’ reserve requirements, with investors anticipating further measures in the coming months, including additional open market operations and FX interventions. Separately, the decline in domestic yields was partially offset by a jump in US Treasury yields, which surpassed 4.25% amid renewed uncertainty over potential European retaliation against US trade policies and tariffs on Greenland.
