Bond Market Outlook For 2026: Yields Seen Rising Despite Lower Interest Rates

Last Update Date: 06-10-2026

Published by Outlook Money

Abhishek Kumar's role: Quoted

Abhishek Kumar said easing inflation, continued RBI liquidity support and a possible further rate cut could pull yields lower, and that foreign debt flows could pick up gradually, with recent outflows not pointing to structural weakness.

The article looks at why Indian bond yields rose in December 2025 despite RBI rate cuts, and what could move them in 2026. It covers heavy government borrowing, RBI bond purchases and liquidity support, possible inclusion in a global bond index, and foreign debt flows.

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Bond Market Outlook For 2026: Yields Seen Rising Despite Lower Interest Rates

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