10-year G-sec yields rose in mid-July, eased after the S&P upgrade, then hardened amid trade and policy uncertainties.

• Yields firmed from mid-July to early August amid India-US trade uncertainties and slower monetary easing expectations.
• S&P’s sovereign rating upgrade on August 14 briefly lowered 10-year G-sec yields before rising again.
• Average term premium increased three basis points between July 16 – August 21 compared to the previous month’s levels.