# Bond Yields Surge, Banks' Treasury Income Falls

> Rising bond yields could cut banks' treasury income by 60% this quarter.
- Title: Bond Yields Surge, Banks' Treasury Income Falls | Shortify
- Summary: Rising bond yields could cut banks' treasury income by 60% this quarter. Banks face nearly 60% drop in treasury income for July-September 2024 due to surging…
- Keywords: bond yields, treasury income, banks, government bonds, public sector banks, core lending income, Bond, Yields, Surge, Banks', Treasury, Income
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/banking/finance/banking/surging-bond-yields-likely-to-slash-banks-treasury-income/articleshow/134799497.cms
- Author: Saloni Shukla
- Published: 2026-10-08T19:02:00+00:00
- Read time: 1 min
- Topics: bond yields, treasury income, banks, government bonds, public sector banks, core lending income
## Bond Yields Rise
The benchmark 10-year government bond yield rose 44 basis points in the past quarter, ending September at 7.19%.
## Banks' Treasury Income Falls
Banks are expected to post a nearly 60% fall in treasury income for the July-September quarter from a year earlier.
## Treasury Gains Decline
Analysts at Jefferies estimate aggregate treasury gains in the fiscal second quarter to be ₹5,500 crore, down 58% from ₹13,100 crore a year earlier.
## Impact on Banks
Public sector banks face sharper declines due to larger government securities portfolios and past treasury gains when yields softened.
## Key takeaway

Banks face nearly 60% drop in treasury income for July-September 2024 due to surging government bond yields.