India bonds to enter 2026 with caution, focus on supply persists

Reuters
2026.01.01 02:43
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Indian government bonds are expected to start 2026 cautiously due to upcoming debt supply and traders awaiting state issuance schedules. The benchmark 10-year yield is projected to range between 6.56% and 6.60%, following a decline in 2025. New Delhi plans to sell 320 billion rupees of the 10-year bond, contributing to a total issuance of 1.28 trillion rupees. The borrowing calendar for states is anticipated soon, which will influence near-term yield movements. India's overnight index swap rates are expected to remain stable after a significant decline in 2025.