INDIA MARKET LENS
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Bond supply may outweigh demand, push yields higher

30 Sept 2026 · Economic Times Markets

Bond yields in India are anticipated to increase in the latter half of this fiscal year. This rise is primarily due to higher government borrowing and ongoing inflationary pressures. Analysts expect demand for government securities to fall significantly short of supply. The trajectory of bond yields will also be heavily influenced by oil prices, particularly if crude stays high.

  • The immediate tone of coverage reads negative.