After Sept, bond yields to peak in Oct too? Experts decode future of Indian bond market; RBI's next move holds key
AI Summary
Retail investors should be cautious as rising bond yields indicate tightening liquidity and inflationary pressures, which could impact fixed-income investments. The potential for a 'higher-for-longer' interest rate environment suggests that investors may need to adjust their expectations for returns on bonds. Additionally, geopolitical tensions and global market movements will play a crucial role in shaping the Indian bond market's trajectory, making it essential for investors to stay informed about these external factors.
India’s bond market is entering October with the comfort of strong domestic growth but the discomfort of rising inflationary pressures, elevated global yields and tighter liquidity conditions.
The sharp rise in the domestic 10-year benchmark yield in September has changed the complexion of the fixed-income market, with investors now having to navigate a combination of geopolitical uncertainty, oil prices, central-bank policy and potential additional supply.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 03 October 2026.
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