13-Oct-2026 09:06:53
India 10-year bond yield hits 3½-year high of 7.39% as RBI tightens liquidity
India’s 10-year government bond yield rose to 7.39% on October 12, its highest since March 2023, after reaching 7.40% intraday; it had closed at 7.30% on Friday. The yield has climbed 38 basis points over the past month. The move followed RBI steps to drain liquidity, including a planned ₹25,000 crore bond sale on October 13 and a rise in banks’ minimum daily cash-reserve maintenance requirement from 90% to 99%, effective mid-October. The RBI also imposed a 20% cash reserve requirement on certain forex derivative contracts.