Analysts anticipate a continued decline in Indian government bond yields, driven by the Reserve Bank of India’s ongoing liquidity infusion and potential interest rate cuts. Despite a lower-than-expected surplus transfer to the government, the 10-year bond yield has already fallen by 52 basis points in 2025. Reuters
The RBI’s proactive measures, including injecting approximately $100 billion into the banking system over six months, aim to support economic growth and stabilize the financial markets. Investors are closely monitoring these developments for potential opportunities in the bond market.
