Bond Yield

Global bond markets also faced pressure, with the 10-year US Treasury yield rising to a five-week high. This followed the US Federal Reserve’s most divided rate decision since 1992, which dampened expectations of near-term rate cuts as rising energy prices heightened inflation concerns.

Japanese government bond yields have risen, while bond prices have declined, tracking a broader global selloff in fixed-income markets. The move reflects mounting concerns over persistent inflation, driven by a surge in crude oil prices following the escalation of the US-Iran war.

Bond markets are expected to be stable amid the crude oil shock as the RBI and government will work together to minimise the impact by keeping easy liquidity and tapping into their strategic oil reserve, opine experts.

A well-constructed accrual-oriented portfolio that blends high-quality core holdings with measured doses of high-yield credit can potentially deliver superior risk-adjusted returns even in a flat yield environment.

On February 2, Indian bond yields rose by 8 basis points after the government announced higher-than-expected gross borrowing. The 10-year bond yield reached 6.78%, the highest since January 2025, amid rising borrowing costs and limited central bank intervention.

Elevated yields in developed markets, including the US, Japan and the UK, also create spill-over pressures for emerging market bonds, including India.

As the Indian stock market resumes trading, investors are wary of US tariff impacts and geopolitical risks. The India-EU Summit may facilitate a Free Trade Agreement, which could strengthen trade ties, bolster exports, and help the economy navigate current global trade uncertainties.

The revamped MGNREGS requires states to assume a higher level of funding responsibility. That could overwhelm the bond markets, say experts. Here's how…

The benchmark 10-year yield ended at 6.5398%, after closing at 6.6328% on Tuesday, dropping the most in a single ⁠session since May 13. Bond ⁠yields move inversely to prices.