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Indian government bonds see another dip today: What's the reason?
14 Nov 2025

Indian government bonds continued their downward trend today, with traders expecting a heavy supply of debt.

The Reserve Bank of India's (RBI) surprise cash withdrawal operation has caught the market off guard, pushing yields on benchmark notes higher.

The Indian government plans to raise $3.2 billion through the sale of 15-year and 40-year bonds.

Yield on benchmark 10-year note rises
Market reaction

The RBI's surprise variable rate reverse repo auction, after a month's gap, has left the market confused about its liquidity stance.

The yield on the benchmark 10-year note stood at 6.5280% today, up from Thursday's close of 6.5161%.

This increase is due to bond yields rising as prices fall in response to these developments.

Traders wary ahead of auction
Demand dip

Ahead of the auction, traders are wary as demand for long-term bonds has weakened.

The yield on the 6.90% 2065 bond has jumped by nearly 43 basis points since June 6.

This spike indicates a growing unease among investors about the stability of long-term bonds in light of recent market developments.

Uncertainty over RBI's rate change next month
Rate speculation

The RBI's mixed signals have fueled uncertainty over whether it will change rates next month.

This comes even as retail inflation fell to a record low of 0.25% in October, while core inflation remained around 4.4%.

India's overnight index swap (OIS) rates rose after the RBI's cash withdrawal announcement soured sentiment further in the bond market.