Weekly Wrap on Bond Market Dynamics on October 09, 2026

• Bond yields rose following the RBI’s first policy rate hike since Feb 2023, with the central bank raising the policy repo rate by 25 bps to 5.50%, in line with market expectations. The RBI also shifted its policy stance from neutral to calibrated tightening, reinforcing expectations of a tighter monetary policy environment and raising the possibility of further rate increases ahead. Losses extended as a rise in crude oil prices heightened inflation concerns, weighing on investor sentiment.

• Reserve Bank of India conducted the auction of two government securities namely 7.06% GS 2041 & 7.43% GS 2076 for a notified amount of Rs. 36,000 crore, for which full amount was accepted. The cut-off price/implicit yield at cut-off for 7.06% GS 2041 & 7.43% GS 2076 stood Rs. 96.18/7.4898% & Rs. 95.33/7.8015%, respectively.