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Softening yields may help banks' treasury rise in Q4

Business Standard

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March 24, 2025

Banks are set to make treasury gains in the fourth quarter of the current financial year (2024-25) as the yield on government bonds has softened so far this quarter, driven by strong inflows into the debt segment, market participants said.

- ANJALI KUMARI

Softening yields may help banks' treasury rise in Q4

The yield on the 10-year benchmark government bond fell 8 basis points (bps) in the previous week—the steepest weekly decline in four months, since November 30, 2024—to settle at 6.62 per cent.

The five-year bond yield fell by 22 bps during the same period, while the 14-year bond yield declined by 11 bps.

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