India bond yields fell on October 27, 2026, as investors bought government debt after a recent selloff. The benchmark 10-year yield recorded its largest single-day decline in three months, easing nearly 5 basis points to 7.4360%.
India bond yields retreat from 7.50%
The yield on the 6.94% bond maturing in 2036 briefly tested 7.50% before reversing course. It was the first decline in nearly a week and the largest since July 27. Bond yields move inversely to prices.
Gopal Tripathi, head of treasury and capital markets at Jana Small Finance Bank, said current levels looked attractive after the recent selloff and that investors may have begun buying bonds in stages.
The rupee also stabilized, ending at 95.1150 per US dollar, marginally stronger than Monday’s close. Brent crude swung between $114.40 and $117 a barrel in Asian trading, contributing to volatility in Indian debt markets.
Swap rates ease ahead of Fed decision
Overnight indexed swap rates fell alongside bond yields. The one-year rate declined 1.25 basis points to 6.64%, while the two-year rate fell 2 basis points to 6.6750% and the five-year rate shed 2 basis points to 6.8150%.
The one-year swap continued to price in roughly 100–125 basis points of rate increases over the following year. Traders remained cautious about elevated oil prices and their implications for India’s inflation and fiscal outlook.
Attention turned to the Federal Reserve’s policy decision on October 28. Earlier in October, the Reserve Bank of India raised its key rate and shifted its policy stance, signaling further tightening ahead.
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