Monday, December 15, 2025

Business

Govt bond yields to edge lower due to ease in inflation, strong fiscal health

IANS | December 15, 2025 12:47 PM

NEW DELHI: The benchmark 10year government bond yield is expected to edge lower till February, driven by softening in inflation, improving fiscal health, and easing crude oil prices, a report said on Monday.

A report from Crisil Intelligence forecasted that benchmark 10year government bond yields will trade between 6.38–6.48 per cent by February 28, 2026. Currently it is at 6.54 per cent.

State development loan yields are expected to ease from 7.15 per cent to 6.98 per cent-7.08 per cent range by February end while 10-year corporate bond yields may fall from 7.15 per cent to 6.98 per cent- 7.08 per cent range.

"Policy remains open for a rate cut amid benign inflation, but the RBI will likely stick to a data dependent approach given the uncertain global environment, " the report said.

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