The yield on India’s 10-year G-Sec fell to around 6.64%, retreating to a one-week low, as investors priced in expectations of continued Reserve Bank of India support in the secondary market, coupled with pressure from softer US Treasury yields. Buying activity from insurers, pension funds, corporates, and the RBI, which collectively acquired a net INR 65.7 billion of bonds over the past two days, lifted investor participation. RBI’s weekly purchase report for the week ending January 16, scheduled for release on Friday, is expected to provide further guidance. Traders noted that while demand has firmed, the market continues to rely on central bank support to maintain stability. Additional RBI purchases totaling 500 billion rupees were scheduled for the day, with expectations of up to 2 trillion rupees in support over the next two months. The decline was further supported by falling US Treasury yields after President Trump scaled back tariff threats on Europe.
