24.07.202607:21:31UTC+00India 10Y Yield Slips Ahead of Bond Auction

The yield on India’s 10-year government security hovered around 6.82%, easing slightly after recent gains as investors cautiously added to bond holdings ahead of the government’s INR 280 billion debt auction, which includes a new 15-year paper. The downside, however, remained limited as market participants stayed alert to mounting inflation risks after Brent crude jumped more than 7%, breaking above $100 per barrel for the first time since May following attacks on Saudi oil tankers in the Red Sea.

Sentiment was further pressured by higher US Treasury yields, with the benchmark 10-year note climbing to around 4.70%, its highest level since January 2025. Investors also evaluated the potential impact on global trade and risk appetite of fresh US tariffs of 10% to 12.5% on imports from about 60 economies, including a 10% duty on Indian goods.

Meanwhile, flash PMI readings pointed to a moderation in growth momentum: the manufacturing PMI slipped to 53.9, the services PMI declined to 53.1, and the composite PMI fell to 54.3, its lowest level since March 2022.