Shorter India bonds rally as five-year yield falls below 6%

India’s five-year bond yield slipped below 6% for the first time since 2022 amid ample liquidity and expectations of more near-term interest rate cuts.

The yield dropped four basis points to 5.997%, while the benchmark 10-year yield was edged down two basis points, reinforcing the ongoing bull-steepening trend characterized by shorter yields falling more sharply than longer ones.