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Market move▼ Bearish for Indian equities
Bond supply may outweigh demand, push yields higher
The brief
- Indian bond yields are expected to rise in the latter half of the fiscal year
- Higher government borrowing and demand may push yields higher
- Rising yields can pressure bond portfolios at banks and insurers
- RBI panel proposes 11.2% higher WMA limit for states, urges staggered borrowing
- Thai cabinet approves $37.5 billion borrowing for 2027 fiscal year
- Hungary raises 2026 net debt issuance plan to $27 billion
- Britain’s finance minister calls debt servicing costs an affront
- RBI may shift govt borrowing towards shorter tenures in H2
Global bond yield surge and Indian government bonds
Rising US Treasury yields, inflation and oil prices pressured global bonds, while supply concerns added to the selloff in Indian government debt. India’s 10-year yield reached 7.19%, its highest since April 2024; US Treasury yields rose above 5.2% and the 30-year yield topped 5.61%.
Wednesday, 30 September
- Bond supply may outweigh demand, push yields higher