FM Nirmala Sitharaman flagged a spike in India’s 10-year bond yields—now at 6.4651%—making debt way pricier, even though repo rates are chill at 5.5%.
This was the largest monthly jump in yields in three years—talk about a market mood swing.
And yep, government borrowing bills just got a lot heavier.
Meanwhile, they’re saying “No capex cuts, deficit on track”
to keep the growth engine primed.
Even the IDBI Bank divestment is still on schedule—no delays there either.
This highlights a balancing act—fund infrastructure and keep fiscal discipline flexing.
For investors, rising yields hint at pressure on bond-linked assets—watch rates.
But government still playing big —capex stays strong, they pledge.
Bond yields up, but capex vibes stay lit.
Mood meter: caution in borrowing, bold in
execution.