# RBI Rate Hike Expected as Indian Bond Yields Rise

> RBI may raise repo rate by 50-75 basis points in October amid inflation risks.
- Title: RBI Rate Hike Expected as Indian Bond Yields Rise · mint
- Summary: RBI may raise repo rate by 50-75 basis points in October amid inflation risks. RBI is expected to hike repo rates by 50-75 basis points in October to address…
- Keywords: rbi, repo rate, indian bond market, bond yields, inflation, monetary policy, central bank, fixed income, corporate bonds, monetary policy committee, money, business
- Source: mint — https://livemint.com/market/bonds/after-sept-bond-yields-to-peak-in-oct-too-experts-decode-future-of-indian-bond-market-rbis-next-move-holds-key-11790928652341.html
- Author: Pranati Deva
- Published: 2026-10-03T09:47:28+00:00
- Read time: 1 min
- Topics: rbi, repo rate, indian bond market, bond yields, inflation, monetary policy, central bank, fixed income, corporate bonds, monetary policy committee, money, business
## October Bond Yields Rise
Indian bond yields rose 30 basis points in September to 7.20% from 6.6% at year start.

> the domestic 10-year yield rose around 30 basis points in september to approximately 7.20%
## Global Bond Yields Track India
US 10-year Treasury yield rose 53 basis points to 5.22% in September.

> the us 10-year treasury yield rising around 53 basis points to 5.22%
## RBI Policy Shift Expected
RBI expected to raise repo rate by 50-75 basis points amid inflation risks from food and oil prices.

> rbi is expected to raise the repo rate by 50-75 basis points amid inflation risks
## US-Iran Tensions Impact
US-Iran tensions kept oil prices above $100 per barrel through September.

> tensions between the us and iran continued to simmer through september keeping oil prices firmly above us$100 per barrel
## Bond Market Pressure
Indian debt market likely to move sideways under pressure with gradual parallel upward shift.

> the indian debt market is likely to move sideways under pressure with a gradual parallel upward shift
## Short-Term Bond Strategy
Shorter-tenure corporate bonds offer better risk-reward opportunities for current market conditions.

> shorter-tenure corporate bonds may offer better risk-reward opportunities
## RBI Liquidity Management
RBI to use OMO sales and sell-buy swaps to manage surplus liquidity.

> the rbi expects to rely on a combination of omo sales and sell-buy swaps to manage surplus liquidity
## Foreign Portfolio Support
Foreign portfolio investors net purchased $5.5 billion in indian bonds this year.

> foreign portfolio investors have remained a source of support with net purchases during the year so far standing at us$5.5 billion
## October Yield Forecast
Indian 10-year benchmark expected to trade between 7.05% and 7.20% in October.

> the 10-year benchmark to trade between 7.05% and 7.20%
## RBI Rate Hike Timeline
RBI repo rate hike expected by next year to address inflation and support currency.

> the rbi expects the repo rate to rise by 50 to 75 basis points by next year
## Key takeaway

RBI is expected to hike repo rates by 50-75 basis points in October to address rising inflation from higher food and oil prices.