Archive · 6 Jan 2026
Indian Bond Market Trends in 2025
The Indian bond market saw some changes in the last two weeks of 2025.
Short-term government bond yields stayed the same, while long-term yields went up a bit.
This happened because of things like more government borrowing, uncertainty about global interest rates, and less money available in the banking system.
State government bonds also became more expensive to buy, and company bonds did too, because of the same reasons.
The report says these changes were expected and are part of normal market movements.
Short-term G-sec yields remained flat due to stable RBI policy expectations and improved liquidity visibility.
Long-term G-sec yields increased slightly because of persistent term premium, heavy fiscal supply, and global rate uncertainty.
Banking system liquidity was tight due to advance tax outflows, currency leakage, and year-end balance-sheet adjustments.
State Development Loan (SDL) yields hardened amid modest supply pressure and cautious duration demand.
Corporate bond yields rose due to tight liquidity, heavy government borrowing, currency pressure, and global uncertainty.
- Who
- Edelweiss Mutual Fund
- What
- Published CURVE report on Indian bond market trends
- When
- For the fortnight ended December 31, 2025
- Where
- India
- Why
- To highlight key trends in the Indian bond market
- Short-term G-sec yields
- Flat
- Long-term G-sec yields
- Edged up
- Banking system liquidity
- Tight
- SDL yields
- Hardened
- Corporate bond yields
- Rose
- Reporting period
- Fortnight ended December 31, 2025
- Source
- Edelweiss Mutual Fund’s CURVE report
