Indian government bond yields and swap rates are expected to continue declining due to anticipated RBI liquidity boosts and rate cuts, despite a smaller surplus transfer. This contrasts with rising US Treasury yields. Increased liquidity and growth focus are key drivers.

• RBI injecting record $100B into banking system.
• 10-year bond yield down 52bps in 2025 YTD.
• Nomura predicts 6.75% 2029 bond to hit 5.75%.