Indian 10-Year Government Bond Yields Fall 5 Basis Points To 7.39% As US Federal Reserve Signals A Less Hawkish Rate Outlook

  • Posted: 30 Oct 2026, 9:01 AM IST
  • 2 Min. Read
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Indian 10-Year Government Bond Yields Fall 5 Basis Points To 7.39%
India's 10-year G-Sec yield falls to 7.39% as Fed signals and lower oil prices support bonds.
Summary

India’s 10-year government bond yield fell 5 basis points to 7.39%, supported by softer US Treasury yields and lower crude oil prices. The rupee remained largely stable against the US dollar.

India’s 10-year benchmark government bond yield declined by 5 basis points to 7.39% on Thursday, 29 October 2026. This marked its sharpest single-day fall since July. The decline was supported by a rally in US Treasury bonds and a modest reduction in crude oil prices.

The benchmark yield had closed at 7.44% on the previous day. It opened at 7.42% on Thursday before gradually easing to 7.39%, according to Clearing Corporation of India (CCIL) data.

US Federal Reserve Signals And Lower Oil Prices Support Bond Yields

US Treasury yields eased after comments from the Federal Reserve on the future interest rate trajectory. Market participants interpreted the remarks as indicating a less hawkish approach from policymakers. This supported sentiment in the domestic government bond market.

Crude oil prices also contributed to the decline in bond yields. Oil prices fell to $113 per barrel from $116 a day earlier.

Despite the recent decline, the domestic bond market outlook remains weak. Several market participants expect the 10-year government bond yield to rise to between 7.70% and 7.75% by December 2026. Axis Bank has projected that the yield could reach 8% by June 2027.

The government is scheduled to sell ₹33,000 crore worth of bonds through its weekly auction on Friday, 30 October 2026. This includes ₹3,000 crore worth of 30-year green bonds.

Rupee Closes Nearly Flat At 95.26 Against US Dollar

The Indian rupee ended almost unchanged against the US dollar on Thursday. It closed at 95.26, compared with its previous closing level of 95.22. The domestic currency recovered after touching a two-week low. Likely intervention by the

Reserve Bank of India (RBI) and softer crude oil prices helped offset demand for the US dollar.

Pressure on the rupee also eased as the US dollar index declined to 102.2 from 102.6. The movement followed relatively dovish comments from the Federal Reserve.

Also Read - Pre-Market, 30 October 2026: Sensex And Nifty 50 Look To Sustain The Momentum; Cautious Optimism Likely To Prevail

This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer

About the Author
Vishwa Ved
Vishwa Ved

Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.

At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.

When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.

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