India’s 10-Year Bond Yield Holds Steady at 6.33%: Market Eyes More Rate Cuts as RBI Maintains Accommodative Stance

India’s benchmark 10-year government bond yield (IN067934G=CC) remained virtually unchanged at 6.3258% on April 24, 2025, compared to its previous close of 6.3294%. The market’s calm reflects growing optimism over further monetary easing and robust demand for government securities.

 

Key Highlights:

 

Stable Yields Amid Rate Cut Hopes: The 10-year yield is holding in a tight range (6.30%–6.34%) as traders digest the Reserve Bank of India’s recent policy minutes, which hinted at continued rate cuts to support growth. The RBI has already lowered the repo rate by 50 basis points to 6% this year and shifted to an accommodative stance, fueling expectations of further easing.

 

Yield Curve Flattens: Bonds maturing by 2030 have softened over 25 basis points since the fiscal year began, flattening the yield curve as investors anticipate more rate cuts and lower inflation. Longer-tenure bonds have also seen strong demand as investors chase higher spreads.

 

Liquidity and Foreign Inflows: The RBI’s liquidity injections and India’s inclusion in global bond indices have attracted significant foreign investment, helping keep yields anchored despite global uncertainties.

 

Macro Backdrop: Easing inflation, subdued crude prices, and a stable dollar index are creating a favorable environment for Indian bonds. The RBI’s ongoing bond purchases—over ₹1 trillion in April—are further supporting the market.

 

With the RBI signaling more support and foreign investors returning, India’s bond market is poised for continued stability and potential yield softening in the coming weeks.

 

Sources: Economic Times, TradingView, Trading Economics