The yield on the benchmark 6.94% 2036 bond was at 6.7511% as of 10:00 a.m. IST, after closing at 6.7582% on Thursday.
Indian government bonds remained firm in early trade on Friday, although the benchmark 10-year bond yield held above the key 6.75 per cent level as investors looked to a weekly debt auction for fresh cues.The yield on the benchmark 6.94 per cent 2036 bond was at 6.7511 per cent as of 10:00 a.m. IST, after closing at 6.7582 per cent on Thursday. Bond yields move inversely to prices.New Delhi will raise ₹32,000 crores ($3.35 billion) through a bond sale later in the day, including two new securities that will mature in three years and seven years.“Market has been taken over by the bulls, as we witnessed yesterday, but the major question still remains, are there enough buyers for the 10-year bond yield to break past 6.75 per cent mark,” a trader said.Oil prices eased in the previous session and hovered around those levels in Asian trade on Friday as traders weighed growing signs of softer global demand against a sharp increase in US crude stockpiles.Brent crude slipped below $87 a barrel after the US Energy Information Administration reported that commercial crude inventories recorded their largest weekly rise since January 2023.The decline in oil prices is positive for India, the world’s third-largest crude oil importer, as lower import costs can help ease inflationary pressures and improve the fiscal outlook.Meanwhile, US Treasury yields also edged lower, with the benchmark 10-year yield hovering near 4.65 per cent, after July producer-price data suggested inflationary pressures at the wholesale level remained contained, prompting investors to scale back rate-hike expectations in September.RATESIndia’s overnight index swap rates dipped, with no major volumes to show any strong trend.On Thursday, the one-year rate was at 6.24 per cent, while the two-year rate was at 5.92 per cent, while the liquid five-year rate was at 6.24 per cent.Published on August 14, 2026
