📷 Image: Wikimedia Commons / TNSE Thiyagu Ganesh PDK
Business
SBI Research Forecasts 10‑Year Indian Bond Yields to Ease by March 2027
✍️ Asianet Newsable
🗓 02 Nov 2026, 02:38 AM
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SBI Research has projected that the yield on India’s 10‑year government bonds will decline, easing by March 2027, reflecting expectations of a gradual tightening of monetary policy.
SBI Research released a new outlook on March 15, 2024, stating that the yield on India’s 10‑year government bonds is expected to ease by March 2027. The forecast comes amid a backdrop of steady inflation and a cautious stance from the Reserve Bank of India.
The research notes that the RBI’s gradual tightening cycle, coupled with a stabilising fiscal position, is likely to support a decline in long‑term yields. Lower yields could signal improved investor confidence and a more predictable policy environment.
For bond investors, the projected easing may translate into more attractive pricing for long‑dated securities. Market participants will watch upcoming RBI policy meetings closely to gauge the pace of the yield decline.
Overall, the outlook underscores a shift towards a more accommodative stance in the medium term, suggesting that the Indian bond market is poised for a gradual improvement in yield levels by early 2027.
The research notes that the RBI’s gradual tightening cycle, coupled with a stabilising fiscal position, is likely to support a decline in long‑term yields. Lower yields could signal improved investor confidence and a more predictable policy environment.
For bond investors, the projected easing may translate into more attractive pricing for long‑dated securities. Market participants will watch upcoming RBI policy meetings closely to gauge the pace of the yield decline.
Overall, the outlook underscores a shift towards a more accommodative stance in the medium term, suggesting that the Indian bond market is poised for a gradual improvement in yield levels by early 2027.