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Yields post biggest fall in nearly three weeks
Financial Express Pune
|January 13, 2026
· State supply cut, index entry buzz drive bond rally
GOVERNMENT BONDS SURGED on Monday, with the 10-year yield posting its sharpest decline in nearly three weeks after states cut this week's auction size and as investors speculated about a potential entry into the Bloomberg Global Aggregate Index.
The benchmark 10-year bond yield settled at 6.6050%, versus Friday's close of 6.6401%, the steepest oneday drop since December 24.
States will borrow up to ₹26,815 crore on Tuesday, below the scheduled ₹36,200 crore.
Traders welcomed the reduced auction as a widening supply-demand gap has been a persistent source of market worry, with combined state and the central government issuance set to hit a record ₹8 lakh crore this quarter.
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