The benchmark 10-year Government Security (6.48% 2035 GS) yield closed almost flat at 6.6732%, compared to the previous close of 6.68%.
Yield of the benchmark 10-year G-Sec (6.48 per cent 2035 GS) on Wednesday closed almost flat at 6.6732 per cent (previous close: 6.68 per cent). This comes amid a jump in crude oil prices following the West Asia conflict.
Venkatakrishnan Srinivasan, Founder & Managing Partner, Rockfort Fincap LLP, observed that the G-Sec market has remained relatively stable despite heightened global volatility triggered by escalating geopolitical tensions in West Asia.
“Brent crude moving above $82 per barrel and the rupee weakening toward the 92 level against the dollar would normally exert upward pressure on yields due to concerns around imported inflation and macro stability.
“However, the benchmark 10-year G-sec yield has actually softened during the day, moving from around 6.72% to nearly 6.67%, indicating that domestic demand and technical factors are currently providing support to the market,” he said.
Venkatakrishnan observed that as year-end closure approaches, banks become particularly sensitive to mark-to-market (MTM) implications on their government securities portfolios.
“A sharp rise in yields would translate into valuation losses on bonds held in their available-for-sale and trading books. So, banks generally tend to support the market and may not allow the 10-year yield to sustainably move much beyond the 6.70% level unless the external crisis worsens materially,” he said.
At the same time, the market is also drawing comfort from India’s current energy buffer. Government and industry sources indicate that India has crude oil and petroleum product inventories sufficient to meet demand for roughly 50 days, which reduces the risk of an immediate inflation shock even if crude prices remain elevated in the near term.
Published on March 4, 2026