FX.co ★ India 10Y Yield Hits 3-Week Low

The yield on India's 10-year Government Security declined to 6.48%, marking its lowest point in three weeks, following dovish signals from the Reserve Bank of India that have heightened expectations of an imminent rate cut. Recent meeting minutes from the central bank reveal an increasing willingness among policymakers to consider easing measures. Governor Malhotra highlighted how the downward revision in inflation forecasts provides an opportunity to implement policies that could bolster economic growth. India's inflation rate has fallen to 1.54% in September, the lowest in eight years, significantly below the RBI's target range of 2–6% and under the market's prediction of 1.7%, thereby reinforcing the argument for a rate cut in December. Although the RBI has maintained current interest rates unchanged earlier this month, two committee members expressed a preference for shifting from a neutral to an accommodative stance, hinting at possible policy adjustments to support an economy affected by US tariffs. Additionally, a recent trade update from US President Trump mentions that Prime Minister Modi has agreed to cease Russian oil purchases, though official confirmation from New Delhi is pending as trade discussions between Indian and US officials continue in Washington.