# Indian bonds steady ahead of RBI policy

> Indian government bonds hold steady as RBI policy decision looms.
- Title: Indian bonds steady ahead of RBI policy · The Economic Times
- Summary: Indian government bonds hold steady as RBI policy decision looms. Indian government bonds remain stable ahead of RBI's potential rate hike this week, with…
- Keywords: indian government bonds, rbi policy, treasury yields, bond market, central bank, rate hike, money, business, Indian, bonds, steady, ahead
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/bonds/indian-bonds-take-a-breather-before-rbi-policy-outcome/articleshow/134687351.cms
- Author: Reuters
- Published: 2026-10-05T05:40:00+00:00
- Read time: 1 min
- Topics: indian government bonds, rbi policy, treasury yields, bond market, central bank, rate hike, money, business
## Indian bonds steady
Indian government bonds held steady early Monday as traders stayed sidelined ahead of the Reserve Bank of India's policy verdict this week.
## Yield at 7.2127%
The benchmark 6.94% 2036 bond yield was perched at 7.2127% as of 10:25 a.m. IST, little changed from Thursday's close.
## RBI policy decision
Wednesday's RBI decision is the immediate catalyst, with markets pricing in the central bank's first rate hike since 2023.
## Global factors
Amid surging global yields, Brent crude above $100, and policy tightening by major central banks.
## State borrowing program
States plans to raise 3.61 trillion rupees ($37.48 billion) through bonds in October-December, above market estimates.
## Market reaction
The heavy supply of 10-30 year SDLs, alongside elevated long-end government bond issuance, is likely to keep the term premium under pressure.
## Key takeaway

Indian government bonds remain stable ahead of RBI's potential rate hike this week, with yields at 7.2127% for the 6.94% 2036 bond.